Unauthorised Overdraft

They don't usually pass it to debt collection while you are in the limit, unless they cannot make an arrears agreement with you.

Martin <

On rare occasions, and then usually only if it's large by comparison with your income, a bank will cancel your overdraft without notice and demand immediate repayment and return all further cheques unpaid. For a normal overdraft of a few thousand or less, if there is regular income being deposited, only a lunatic bank manager would stir the pot.

Try speaking to your bank - they may be sypathetic and arrange an authorised overdraft at a more manageable interest rate.

Even then, tends mostly to be where there isn't money going into the account which gives them the reason to withdraw the overdraft. Try having an overdraft and decide to have wages paid into a different bank.

Martin <

An overdraft is repayable on demand. That's why it used to be cheaper than other finance. These days you can get money cheaper elsewhere, so don't bother. If your credit rating is crap you will pay heavily for credit.

In message , Bystander writes

Bank overdraft letters still carry the 'on demand' but also carry the 'reviewable in a year' bit. It was cheaper mainly not because of it being repayable on demand, but because the risk to the bank was low because they were 'relatively' hard to get. Yes, its possible to get introductory credit card offers that are cheaper initially but will revert to a higher rate later. They are also repayable on demand in so far as the credit facility can be withdrawn due to misuse or missed payments and will revert to a higher rate later. An authorised overdraft at 7.75% APR 7.9 with no cash advance charges isn't bad for a continuous line of credit.

Finally, if your credit rating is crap you wont get a credit card never mind cheap credit but if you have an existing bank account then an authorised overdraft may be possible.

"Martin Davies" wrote

Tried & succeeded. Your point is?