An overdraft can be agreed on your account to be used for any unexpected payments, and is not intended to be used to fund regular day-to-day expenses. It is a form of borrowing money short-term and could be recalled by the bank at any point. If you have no available funds in your account and go overdrawn when you have not arranged an overdraft, you will be charged fees for each payment allowed despite lack of funds and each payment refused due to lack of funds. Each month we will charge you for a maximum of three unpaid transaction or returned item fees at £7.50 each, capped at £22.50 per month.
If you have an arranged overdraft but go over your arranged overdraft limit you will be charged interest and fees for going past your limit as well as fees for each allowed or refused payment as outlined above.
If you’re struggling to get out of your overdraft or are relying on it for regular bills and payments, some of the options we can discuss include:
- merging your existing debts into one affordable monthly payment.
- Arranging a repayment plan to help reduce your overdraft balance
- Looking at the cost of your account and whether we may have a more suitable current account for you.
We can also give you some breathing space to think over what you want to do and get impartial debt advice.
If you are regularly using your overdraft at the minute, we may reach out to you to make sure that your bank account still meets your needs. Repeat usage of your overdraft may mean you are paying recurring costs each month, which may mean it is harder to pay back your overdraft over time. To understand the costs you may currently be paying, please visit our online Cost Calculator.
Just so you know! If we do make a change to your repayments because you need help, this may be reported on your credit file and may affect your credit rating (credit score) and your ability to obtain credit in the future.
