My bank is charging enormous unauthorised overdraft fees. Can I get a reduction?

Affected by Covid-19? Immediate Rescue Or Closure Options Available

FAST Free Director Advice & Support, With 100+ offices Nationwide our Licensed Insolvency Practitioners can Help Today.

My bank is charging enormous unauthorised overdraft fees. Can I get a reduction in overdraft fees?

Updated: 8th April 2020

I am a director of a relatively small enterprise in Birmingham. Recently there was a discrepancy with my bank account and it appears I had an unforeseen overdraft of about £10,000. After checking our books, we found that a cheque we had written the week before to a supplier never got registered in the books and that put us into overdraft.

The bank paid the overdraft which at the time seemed like a blessing. However, the interest rates on this overdraft are phenomenal because they say it is in a category called ‘unauthorised’ as I never set up an overdraft account with them. I would like to know if there is a way to get a reduction in overdraft fees because this is just one more debt that we can’t afford at this time. What should I do?


Unfortunately, this is a question we are often asked because banks will surprisingly extend a one-time overdraft to solid business customers with a strong history of keeping their account in good standing. As they see it (the bankers) it is a way to ‘force your hand’ into a loan where they will make good money on interest rates.

No, you didn’t ask for a loan, didn’t want a loan and obviously made an error in accounting. Still, no matter how you look at it the end result is the same. You took out a loan (overdraft) for that £10,000. Now then, can you get a reduction in overdraft fees? Perhaps it is possible and there are a few areas you can explore.

First of all, have you tried talking to your bank? Sometimes banks will lower fees and interest rates for their best customers if you ask for a reduction in the fees you are paying. If the bank refuses, have you considered taking out a short term, low interest loan? If your business is not in distress, you may be able to qualify for decent rates.

  • Low-cost Finance for UK Businesses
  • Funding 1,000+ Limited Companies Since 1989
  • Broad Range of Financial Products
Visit UK Business Finance
Refused a CBILs or Bounce Back Loan?
Alternative Finance Options Available

Another avenue you may want to explore is invoice factoring or invoice discounting. Factors and discounters can lend money based on your book debt ledger by loaning you a percentage of what is owed to you. The one thing you want to be aware of is the rates offered by other lenders so that you can compare rates for the best deal.

On the other hand, if your company is financially distressed and you don’t feel you would be able to get a low rate loan, our insolvency specialists can review your current situation and help you find a way to get out of hot water with the bank. Whether we advise a Company Voluntary Arrangement or help you find financing, the initial consultation is free of charge.

Call the experts at Real Business Rescue to find a solution that works for you. It is often difficult to get banks to reduce overdraft fees but we have alternatives you can explore. Call us on 0800 644 6080 to speak with someone who has the training and experience to offer the advice you need. 

Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY