Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Unarranged Overdraft, can someone help explain?

28 replies

yourhairiswinterfire · 15/02/2021 11:23

I'm really embarrassed I have to ask, but I don't have much experience with banks due to not having one for years because of an abusive ex, and this is the first time this has happened since opening the account.

I have a direct debit set up, where £20 is taken each month. I've completely lost track of time and forgot they were taking it today, and they took the DD when I had barely any money in my account. So I've gone into an unarranged overdraft and they bank has 'loaned' me £100 and notified me that I need to pay the cleared funds by 2:30pm today.

My question is-by cleared funds, do they mean the £20 that has been taken for the DD? Or do I owe them the full £100 even though only £20 was spent (I'm not complaining if it's the latter because it's my own stupid fault.)

I'm aware I sound thick and this should be obvious Blush Just want to check.

OP posts:
Snowymcsnowsony · 15/02/2021 11:26

You owe them for the £20 they have paid out for you. Afaik a few banks have allowed unrequested overdrafts due to Covid.

HowWonderful · 15/02/2021 11:26

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

HowWonderful · 15/02/2021 11:27

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Interested in this thread?

Then you might like threads about this subject:

General money
EBearhug · 15/02/2021 11:27

If you had £5 left in your account, paying £30 will take you to -£15. On top of that, there may be charges and interest from the bank, which could take you to -£65 or something- you need to pay back all that so that your balance is at 0 or in credit.

DoctorHildegardLanstrom · 15/02/2021 11:29

I would double check with your bank about the overdraft, when I have gone over they have allowed the DD to go through, but then I need to pay the money in to get my account back to zero before 2.30pm otherwise they refuse the direct debit and charge me a fee.

dementedpixie · 15/02/2021 11:31

However much you are overdrawn should be paid back in to bring the account back into credit. Have they given you a £100 temporary overdraft facility?

Original poster
yourhairiswinterfire · 15/02/2021 11:34

@dementedpixie

However much you are overdrawn should be paid back in to bring the account back into credit. Have they given you a £100 temporary overdraft facility?
I have no idea. There was £7 in there, I got the text, checked my account and there was £100 that I hadn't put in...

I'll get down there and put it in £200 and see what's happening. As you can probably tell, I'm not the brightest and all of this baffles me Blush

OP posts:
HowWonderful · 15/02/2021 11:36

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

BarbaraofSeville · 15/02/2021 11:39

How much are you overdrawn? Is it just the £20 DD that's caused you to go overdrawn or were there other payments too? Or have they given you a temporary £100 overdraft?

If it's just the £20, you just need to repay that. I don't think they charge fees for overdrafts anymore, it's now just interest, but that will be hardly anything, if it's just £20 or less for a few days or less, it might be nothing at all.

However, it's useful to have a small authorised overdraft and pretend it doesn't exist in terms of being able to spend the money, but it means that if something like this happens, it doesn't matter as you weren't in unauthorised overdraft.

Can you move some money from another account? Do you have any other payments coming out before you get paid again?

If this is your main current account, I'd probably pay money in to put the account back into the black and then tell them it was an error on your part and can you have a small authorised overdraft in case similar happens again in the future.

dementedpixie · 15/02/2021 11:41

What is your actual balance? It might be something like -£13 with available balance around £87

You need to pay in at least that overdrawn amount to bring it into credit.

BarbaraofSeville · 15/02/2021 11:43

Cross posted. What do you mean 'there was £100 you hadn't put in there'?

Overdrafts don't show as money in the account, they're a borrowing facility.

starfishmummy · 15/02/2021 11:47

Definitely talk to your bank. Different banks have different systems - the accoint I have has an automatic £200 overdraft facility available should I need it. Maybe you could ask for one to be there in case it is needed, if you go into an "unauthorised " overdraft situation as has happened here, it can cost a lot in fees and interest.

HowWonderful · 15/02/2021 11:47

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

HowWonderful · 15/02/2021 11:47

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

TomHardyAndMe · 15/02/2021 11:48

@EBearhug

If you had £5 left in your account, paying £30 will take you to -£15. On top of that, there may be charges and interest from the bank, which could take you to -£65 or something- you need to pay back all that so that your balance is at 0 or in credit.
What maths is that? 5 - 30 = -25
TomHardyAndMe · 15/02/2021 11:49

Also there won’t be charges if the OP clears the £20 by 2:30. That’s literally what the bank has advised.

Original poster
yourhairiswinterfire · 15/02/2021 11:49

Fuck sake...it was DP who put the £100 in the morning Blush 🤦‍♀️ I didn't realise, I've just spoken to him. It didn't come from the bank, I just assumed it did because I don't know how it works and I didn't realise he'd gone there.

It was still too late though, because they'd already taken the DD.

So it looks like I just owe them the £20?

I'm so sorry guys (I did tell you I was thick).

I'm definitely going to get an arranged overdraft sorted to stop this happening again.

This is humiliating! I think I should go back to bed....

OP posts:
TomHardyAndMe · 15/02/2021 11:50

They’ve given you until 2:30 to clear whatever the -number is.

They’ve given a £100 unauthorised overdraft as a buffer in case you need it. But it will cost you to do so. Don’t think of that as real money because it isn’t. Just cover what you need to.

dementedpixie · 15/02/2021 11:51

Its not too late because the £100 will cover the direct debit and you should be in credit now.

dementedpixie · 15/02/2021 11:52

The text will have been sent before your dp put the money in so your dd is covered and you should be in credit again

Rememberallball · 15/02/2021 11:54

@yourhairiswinterfire

Fuck sake...it was DP who put the £100 in the morning Blush 🤦‍♀️ I didn't realise, I've just spoken to him. It didn't come from the bank, I just assumed it did because I don't know how it works and I didn't realise he'd gone there.

It was still too late though, because they'd already taken the DD.

So it looks like I just owe them the £20?

I'm so sorry guys (I did tell you I was thick).

I'm definitely going to get an arranged overdraft sorted to stop this happening again.

This is humiliating! I think I should go back to bed....

If the £100 was put in by your DH this morning, he has effectively cleared the amount owing so you shouldn’t need to do anything now but double check with the bank to make sure this is the case and that you’re back in credit
Original poster
yourhairiswinterfire · 15/02/2021 11:55

@dementedpixie

The text will have been sent before your dp put the money in so your dd is covered and you should be in credit again
I woke up late, saw the text, immediately checked the account still half asleep and saw the £100 that I didn't put in and went into a panic!

I'm cringing so hard 😂

OP posts:
Original poster
yourhairiswinterfire · 15/02/2021 11:56

And thank you everyone! Sorry for the confusion.

OP posts:
FAQs · 15/02/2021 12:02

It’s worth arranging a small authorised overdraft whilst you’re at the bank just in case as a buffer.

Goodbye2020Helllo2021 · 15/02/2021 12:02

So you are now £87 in credit?

£7 balance
-£20 DD

  • £100 (Thanks OP’s DP!)