Two scenarios arise. If your overdraft was concluded for a fixed term of three, six months or more, it ends on the expiry date of the contract. On the other hand, the bank cannot terminate it before its term. Check, however, that the contract does not include clauses for early cancellation of overdraft for certain reasons: overdraft, etc.
In the case of an overdraft authorization concluded for an indefinite period, the bank cannot terminate this option unless it is provided for. Consult your account agreement or contract setting out the overdraft authorization. In all cases, your bank must inform you of this in writing, letter or email, respecting a legal notice period of 2 months.
The bank must honor the checks issued before the notification of termination of the authorized overdraft. Please note that your institution may also terminate the overdraft authorization without notice if the authorized overdraft is exceeded. He must communicate to you, if possible, his reasons before the termination.
The first instinct is to make an appointment with your bank advisor to try to resolve the situation amicably. If a solution has not been found, it is always possible to contact the consumer mediator of the banking establishment. Ultimately, legal action is possible.
Since the reform of civil procedure of January 1, 2020, litigants must, before going to court, for an amount of less than €5,000, request mediation, conciliation or a participatory procedure.
In the event of an unresolved dispute, changing banks can sometimes be beneficial. You will get an overdraft elsewhere and start fresh. Online banks often offer overdrafts and free banking services.
Since the implementation of banking mobility, an individual can more easily change establishment, the banks carrying out all the procedures for you free of charge, in particular the implementation of new transfers and the change of RIB with telephone operators, suppliers energy, etc.
