From: "Andy Pandy" 
Newsgroups: uk.finance
Subject: Re: Unauthorised Overdraft Charges
Date: Sat, 21 Apr 2007 14:32:04 +0100


"tim....."  wrote in message
news:58ueidF2g8ssoU1@mid.individual.net...
> > This may explain First Direct's new T&C's regarding overdrafts - they seem
> > complicated but the underlying idea seems to be that making a payment
> > which exceeds
> > your overdraft limit is *not* a breach of contract but an "informal
> > request" for an
> > overdraft/higher limit!  And there is a charge if you make too many such
> > "requests"!
> >
> > So does this make it a "charge for a service" rather than a "breach of
> > contract" ??
>
> You might be right here, but only because the charge for
> increasing your overdraft when they pay the 'offending'
> cheque is the same as for a pre arranged overdraft (or
> increase thereof).
>
> They also both expire after 6 months so everyone is
> going to have to pay again, how ever their overdraft is
> arranged.

Informal overdrafts expire after 31 days, but there's no mention of how long formal
overdrafts last, they say they'll send a letter spelling out the terms. The
implication is that even formal requests have a limited lifespan, but as long as it's
>6 months then there should be no fee (although you may have to remember to renew).

I imagine the usual policy would be to give indefinite overdrafts to "reliable"
customers, if they don't I don't think they'll have many customers left....

> I don't know about other Banks, but mine gave me a
> pre-arranged overdraft for free and it has rolled over
> indefinately.

So do FD at the moment - if this changes I'm definitely switching.

--
Andy