Define: Overdrawn

Overdrawn means the state in which the balance of an account goes below zero

Overdrawn means the state in which the balance of an account goes below zero.

Relevant Circumstances

  • When a customer's balance falls below zero and unauthorised borrowing arises
  • If overdraft fees or interest apply once an account is overdrawn
  • Where credit facilities depend on managing overdrawn positions

Relevant Sectors

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