The cash facility negotiated with your bank has a controlled cost since the interest rate appears in principle in the account agreement it has given you or at least in an endorsement that your advisor has taken care to have you sign.
In the context of an unauthorized overdraft, things are more complicated.
Whether it is an overrun that has been granted to you or a debit balance that occurs without authorization , the event may end up costing you a lot and causing you serious inconvenience.
Calculation of the agios of an unauthorized overdraft
The bank bills its agios each quarter using in principle the number method. This formula is to multiply first the balance of your bank account by the number of days where the latter is debtor then by the rate of agios practiced.
The rate of banking agios
The law limits the rate charged for an unauthorized overdraft at the rate of attrition set by the Bank of France. This rate amounted to 19.15% in the last quarter of 2011 (for amounts between 1524 and 3000 €), which is far from negligible.
The risk of litigation
But besides its high cost, an unauthorized overdraft can put you in trouble with your bank . This may require you to put your account back into a credit position.
To do this, it should give you a reasonable time to do so, but be aware that nothing requires it and that it may require you to credit your account immediately.
Important : Some banks may use illegal practices to deal with the problem such as making a transfer without your authorization from your bank book to credit your account. Know that nothing allows you to do it if you have not decided.
In any case, if you are in dispute with your bank, ask to meet your advisor first or your branch manager. In parallel, take care of the problem by sending a registered letter with acknowledgment of receipt detailing the situation and your possible reproaches.
If you must find yourself in an unauthorized overdraft situation, take the initiative to call your advisor and explain your difficulties. There is nothing worse than putting the bank in front of the fait accompli.
You can then consider amicable solutions and even if many banks refuse to grant a loan to fill a debit account, you can propose to spread the debt over a few months.
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