- 17 Feb
Unauthorised Overdraft Fees for an SME
We have just had an invoice finance prospect, an SME, where one of the major banks has reduced their overdraft by circa 90% after they received a payment into their account which reduced their borrowing. Furthermore, the bank have then "allowed" an unauthorised overdrawn position (equivalent to circa 50% of their previous overdraft value) and charged them circa the value of the "unauthorised" position in fees over the course of a year!
We will no doubt be able to find them an invoice finance facility that will drastically reduce their borrowing costs but it raises the question as to how this can be allowed to go on when the tax payer has just bailed out a number of banks, all in the name of injecting liquidity back into the banking system!