Question re. Unauthorised limits

sallywin

Hi all, I've just got a question regarding unauthorised limits on current accounts held with a bank and am wondering if a bank has to, by law, notify a customer in advance, before they withdraw the facility of an unauthorised limit, or if they can disable it when they see fit without advance notification.

I would be really grateful to hear from people who are sure about this as my own guess is that they can, that they can take it away without giving the customer notice, (but that they would notify about the authorised limit) but I would like to get this confirmed one way or another for sure as I am just guessing.

thanks a mil!

roro2

My understanding is that they must formally withdraw an "implied" limit, where an implied limit has been created by the bank paying items on an account (not "unpaying" them)above the authorised limit, and they must also give 21 days notice. I am not sure if there are exceptions to this though.

a bank can withdraw an overdraft and demand full repayment at any time with no notice
in practice they probably won't but they can

roro2

roro2 wrote: »

where an implied limit has been created by the bank paying items on an account (not "unpaying" them)above the authorised limit

Or for accounts without a limit, paying items that bring the account into debit.

sallywin

bluewolf wrote: »

a bank can withdraw an overdraft and demand full repayment at any time with no notice
in practice they probably won't but they can

So I suppose if that applies to overdrafts with an authorised limit the same would apply to the unauthorised limit?

sallywin

sallywin wrote: »

So I suppose if that applies to overdrafts with an authorised limit the same would apply to the unauthorised limit?

yea since they can withdraw the whole thing at any time it seems to follow it applies to limits too...

sallywin

Nice! They really do have a lovely set-up going for themselves don't they. Sorry, can't resist.

Legislator

sallywin wrote: »

Hi all, I've just got a question regarding unauthorised limits on current accounts held with a bank and am wondering if a bank has to, by law, notify a customer in advance, before they withdraw the facility of an unauthorised limit, or if they can disable it when they see fit without advance notification.

I would be really grateful to hear from people who are sure about this as my own guess is that they can, that they can take it away without giving the customer notice, (but that they would notify about the authorised limit) but I would like to get this confirmed one way or another for sure as I am just guessing.

thanks a mil!

I dont believe that you can call an unauthorised overdraft a facility. You should check your T&C's where I am sure it is very clear that there is no such thing as an implied limit or overdraft.

sallywin

Legislator wrote: »

I dont believe that you can call an unauthorised overdraft a facility. You should check your T&C's where I am sure it is very clear that there is no such thing as an implied limit or overdraft.

You can, as the unauthorised limit is something the bank either allows for or doesn't. So you either have this facility or you do not. It is black and white. So for example you can have an authorised limit of 1000euro but your bank allows you up to 1500 euro in the event that you go over the 1000euro on a temporary basis. It is dependent on the credit flow in your account.