Resolved Question

My bank account has become overdrawn, Should it have?

Hey,
I went shopping the other day I had about €1500 in my account and I got a little carried away with myself and spent €1750 on my Visa debit card now my account has become overdrawn, but I thought that an under 18's account can not become overdrawn and I'm only gone 16.Its an adapt account with Ulster Bank(Ireland). My parents have no problem paying it back but I just didnt think that it could happen.
Should this have happened, I would have thought it would be illegal for my account to become overdrawn

Additional Details

I didnt just try to pull a fast one I simply thought that my card would have been rejected when my money was gone, I spent the lot on clothes and a phone so it was kind of hard to keep track on what I spent in those few hours

3 days ago

Best Answer - Chosen by Asker

Each bank will have specific policies dealing with this situation. It appears yours has chosen to pay the overdraft and assess you a fee for doing so.

I know this doesn't apply to you in the UK, but in the US laws were recently passed (not certain if they have taken effect yet or will soon) where the bank can not do this by default. You have to opt-in to this feature and agree to pay the fees. If you do not opt-in, then any purchase you try to make that would overdraw you would be denied by the system. I think this is what you would have preferred to have happen.

Check with your bank to see if you can opt-out of this feature so it does not happen again, if you do not want the overdraft protection.

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Other Answers (6)

• So what did you expect was going to happen if you had €1500 but spent €1750? Simply be embarrassed when the card refused to pay up?
  
  Banks have some leeway in how they handle customer accounts. By paying this at your request - you were the person using the card, remember, - they can now charge you penalties and interest. This is how they make their money - by levying fees.
  
  If it were illegal for your account to go overdrawn, perhaps it should also be illegal for someone who has no money left in the account to try to pull a fast one and spend what they have not got.
  
  Your parents may indeed be willing to pay it back, but as I see it, it is not their problem. It is yours.
• For the answer to this you need to look at the information you received when you opened your bank account. Looking at the account information on their website it shouldn't have happened, but then as far as I'm concerned a 16yr old shouldn't have access to that kind of money anyway. If I was your parents I'd definitely have a problem and I'd make you earn the money to pay it off, not bail you out.
• Hi, banks do as they see fit then charge you exorbitant costs. That is the only rule to keep in mind.
  My advice is to talk to your bank and sort out the overdraft as soon as you can. Arranged overdrafts now cost £1 per day, Unarranged ones £5 per day.
  As you can see it is their favourite ploy and they raise about one quarter of their total income from this activity alone. I am taking the Halifax to court over £1000 of penalty charges, I wouldn't be doing this if I thought they were fair and legal.

  Source(s):

• It depends upon the agreement you have with your bank. I wouldn't assume that being under 18 will prevent you from going overdrawn if you spend more money than the amount in your account. I would contact your bank as soon as you can to explain what happened. If the overdraft can be paid off quickly, they may waive any charges.
• It doesn't matter how old you old being 18 doesnt matter. After all then everyone under the age of 18 will be withdrawing their account. You can't expect to get stuff for free. You need to pay up before the law gets involved.
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