Can the bank overdraw my account without my permission?

Who hasn’t had this problem? You trust that the money you have deposited in your account will be enough to pay the month’s expenditures. Sometimes we miscalculate and all of a sudden, we find that a direct debit in our account produces an overdraft… 

But, what is an overdraft facility? It’s basically a credit granted voluntarily by the bank that doesn’t require my authorisation. Supposedly, the overdraft will avoid damages resulting from non-payments, such as an electricity supply cut-off or an accident that isn’t covered by your insurance. 

But watch out! Overdrafts can be quite expensive: the bank may charge an arrangement fee, as well as interest. Therefore, if you don’t want your account to be overdrawn, we recommend going to your bank and signing an agreement refusing the overdraft facility. 

However, in any case, bear in mind that every time your account is overdrawn, your bank must send you a document detailing all the amounts charged. And, if you’re a consumer, its effective cost will be limited to two and a half times the legal interest rateAbre en ventana nueva.

Check the legal interest rateAbre en ventana nueva.