Overdraft fees :(

GothicGhost · 15 May 2010 at 10:50

My bank when OD but i don't have a overdraft limit so how can they OD me ?

Should they just charge me return direct debit fee and not pay say my insurance.

This is with Lloyds

Thanks.

Phil99 · 15 May 2010 at 10:58

It'll be an unauthorised overdraft which is more expensive than an arranged overdraft.

The only way you can avoid going overdrawn (afaik) is to have a limited account with a Visa Electron as payments 'should' be bounced if there's no funds (i.e. under-18s have Electrons as they can't legally have overdrafts, authorised or not)...well, the other way is to ensure you always have funds in the account to cover everything, but I appreciate that's not always easy/possible.

Heliospherez · 15 May 2010 at 11:04

I've got a sore head from reading that.

What sort of account do you have and what sort of arrangement ? How did you go overdrawn and for how long ?

PapaLazaru · 15 May 2010 at 11:04

Bouncing payments generally cost more than letting you go overdrawn. Plus whoever got bounced might charge you as well.

The fact that they let you go at least means your account is generally running ok. Why not call them up, state you have made a mistake and see if they will stick a little buffer overdraft on there for you of let's say, £100?

Admiral Huddy · 15 May 2010 at 11:06

why would you want to void the insurance. A direct debit is a guarantee. Arrange an over draft facility even if you dont think you'll need it.