FURTHER ACCOUNT In the Bank Charges Test Case — OFT v Abbey National and others [2008] All ER (D) 349 (Apr)(see NLJ 9 May 2008, p 668)-- Mr Justice Andrew Smith on 22 May 2008 granted the banks permission to appeal his ruling that current terms and conditions for
unarranged overdraft charges were susceptible to assessment as to fairness under the Consumer Credit Regulations 1999 (SI 1999/1956).
Charges
for unarranged bank overdrafts could be banned, under an option being considered by the Financial Conduct Authority (FCA).
Ask your bank about their policy
on unarranged overdrafts, so that you are aware of the possible penalty fees and interest rates, should you exceed your available balance.
We ask that you do not
seek unarranged interviews with staff members so they may focus exclusively on providing the best possible experiences for our visitors.
While the policy varies between financial institutions, most cheque or savings accounts
allow unarranged overdrafts to take place.
The head of the city regulator stated in an official report that
unarranged overdraft costs now exceed interest on payday loans.
Some banks will honour your overdrawn payment without charging
you an unarranged overdraft fee, particularly if you are a valued customer or if it is your first time.
An unarranged or accidental overdraft is when you take out more money than you have in your account, so you end up with a negative balance.