5 min read.

My Dozens account says that I’m overdrawn, but I thought Dozens didn’t offer overdrafts?

19 February 2020

Being overdrawn and having an overdraft might sound like the same thing, but they’re actually very different.

An overdraft is a financial lending product that we don’t offer at Dozens. This is because we don’t have the regulatory permissions to do so and we purposely haven’t pursued these because our mission is to help our customers better manage their money so they don’t have to rely on credit or lending products.

Being overdrawn, on the other hand, is when more money comes out of your account that you have available in it, and so you subsequently owe the resulting negative amount to the account provider.

At Dozens, we won’t approve any payment that would make your account overdrawn, however there are payments that don’t come directly to us for approval – these are known as ‘offline transactions’ (like Transport for London payments). As we can’t directly control these there’s a chance that, if they’re for more than you have in your account, they could result in you having a negative balance and so make you overdrawn. If this happens, you’ll need to repay the overdrawn amount back into your Dozens account within 30 days, as this is money that you owe to us (in line with our T&Cs).