Hello,
I am trying to find out if a bank is in breach of contract if it overdraws your account rather than dishonoring a check and charging you a fee when you write a personal cheque.
For example, say you write a personal cheque for $25,000 and you have $2 in your account, does the bank have the choice to overdraw your account by $24,998 so that the cheque can be presented? Or are they in breach of contract?
I have tried to find the answer in the Cheques Act 1986 (Cth) but I can't find out who gets to make that decision. I have read that the bank can overdraw your account to present a cheque when you have insufficient funds ONLY if there are express or implied terms in your contract with the bank but I can't find the case law or legislation to back this up.
Thank you
Claire
I am trying to find out if a bank is in breach of contract if it overdraws your account rather than dishonoring a check and charging you a fee when you write a personal cheque.
For example, say you write a personal cheque for $25,000 and you have $2 in your account, does the bank have the choice to overdraw your account by $24,998 so that the cheque can be presented? Or are they in breach of contract?
I have tried to find the answer in the Cheques Act 1986 (Cth) but I can't find out who gets to make that decision. I have read that the bank can overdraw your account to present a cheque when you have insufficient funds ONLY if there are express or implied terms in your contract with the bank but I can't find the case law or legislation to back this up.
Thank you
Claire