Overdrafted bank account

overdrafted bank account

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What is an Overdraft? How do you pay it back?
An overdraft occurs when you don't have enough money in your account to cover a transaction, but the bank pays the transaction anyway. An overdraft lets you borrow extra money through your current account. For example, if you have no money left in your account and you spend ?30, your balance. A bank account overdraft happens when an individual's bank account balance goes down to below zero, resulting in a negative balance.
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Overdraft, credit card or loan? Part of the Series. Personal Bank account Overdrafts What is an overdraft. Lloyd's Bank. In , the Consumer Financial Protection Bureau CFPB found some financial institutions charged unfair overdraft fees by authorizing an ATM or debit transaction made when the customer had a positive balance, but later charging an overdraft fee because intervening transactions went through before the debit settled.