**Mandatory** Please either read the below to the customer or allow the customer to read for themselves;
Important information on overdrafts
As part of the account opening process we will assess your credit file to see if you are eligible for an overdraft, before deciding if you would like to take this facility (where eligible) there is some information we would like to share with you.
There are 2 types of overdrafts:
- An arranged overdraft is a facility you agree up front that allows you to spend more than you have in your account up to a certain limit.
- An Unarranged overdraft is when you spend more than you have in your account or exceed your current arranged limit without agreeing it with us up front.
Both facilities accrue fees, however unarranged facilities will cost you more and may cause payments to be rejected e.g household bills, loan repayments etc. We will show you your fees and charges later in the application.
If you chose a Select Account there is an optional free service called Overdraft Control. It is designed to help you avoid going into an unarranged overdraft by rejecting most payments that could take you overdrawn
Overdrafts are a borrowing facility that you are responsible for repaying should you use it. If you do not repay what is owed this could have a negative impact on your credit profile, which most lenders use to assess whether to lend or not.
Overdrafts are most suitable for short-term borrowing or emergencies.
You can access our Eligibility Tool and Cost Calculator on the Overdraft pages of our website.