Not being able to add to pots while in overdraft

((╯°□°)╯︵ ┻━┻) #21

Don’t be put off by people being negative, keep the suggestions coming and remember it’s nothing personal :slight_smile:

(Jordan) #22

Isn’t it also the case that when you are overdrawn your DDs and Standing Orders can be declined?

Not sure if this is the case at the big clearing/ legacy banks but I would have thought it has something to do with the fact that an overdraft whether arranged or not is effectively a credit facility.

Given the bank is providing credit, I guess they can sorta say what you can and can’t do with that money.

(Jamie 🏳️‍🌈) #23

No, if a bank allows you to borrow up to a certain limit, it will continue to pay direct debits° – in fact most overdrafts are sold as an ‘insurance policy’ to keep direct debits being paid when you run out of money.

(°dependant on actually providing you with a credit facility)

However, an overdraft is always repayable upon demand, so a bank can demand you repay your overdraft within 30 days (or immediately, if that’s in the Ts&Cs). This is why you shouldn’t ever confuse an overdraft with your own money.

(Jordan) #24

Ah okay that makes sense - I’ve never had a DD when in Overdraft so was speculating.

No I understand the difference, if anything I was trying to prove further that it really isn’t your money at all and is simply the Bank offering you credit that’s as you say repayable on demand, therefore restricting the use of that money (at least in terms of features) is probably normal.