Credit agreement in the form of an unarranged overdraft
Last update
Summary:
A credit agreement in the form of an unarranged overdraft (account overrunning) is when a professional lender tacitly allows you, as the consumer, to access more funds than what you hold on your current account or more than the overdraft facility that has already been agreed to.
In addition to the traditional consumer credit agreement, there are more specific agreements, such as credit in the form of an unarranged overdraft.
The lender thereby agrees to a tacit overdraft on your account, which allows you to have access to funds that exceed:
- the balance of your current account; or
- the amount of the agreed-to overdraft.
Who is concerned
Professional lenders and consumers who tacitly enter into a credit agreement in the form of an unarranged overdraft (e.g. credit granted when a current bank account is opened).
How to proceed
Conclusion of the contract
The agreement does not need to be issued in writing.
Duration of the unarranged overdraft
Account overdrawn for more than 1 month
If your account is overdrawn for more than one month, the lender will promptly inform you in writing, on a paper document or on another durable medium:
- of your overdraft;
- of the amount involved;
- of the borrowing rate;
- of any penalties and all costs and interest that are applicable in this case.
Account overdrawn for more than 3 months
If your account is overdrawn for more than 3 months, the lender will immediately offer you another type of credit agreement to prevent you from using the overdraft as a long-term form of credit, due to higher interest rates and less favourable terms for you.
Who to contact
-
Directorate for Consumer Protection
- Address:
-
271, route d’Arlon
L-1150
Luxembourg
Luxembourg
B.P. 119, L-2011 Luxembourg
- Phone:
- (+352) 247 73 700
- Email address:
- info@mpc.etat.lu
- Website:
- https://mpc.gouvernement.lu/en.html
-
Directorate for Consumer Protection
Passenger complaints
- Address:
- 271, route d’Arlon L-1150 Luxembourg Luxembourg
- Email address:
- passagers@mpc.etat.lu
-
Luxembourg Consumer Protection Association (ULC)
- Address:
- 55, rue des Bruyères L-1274 Howald
- Phone:
- (+352) 49 60 22 1
- Fax:
- (+352) 49 49 57
- Email address:
- info@ulc.lu
- Website:
- https://www.ulc.lu
Closed ⋅ Opens monday at 8.00
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8.00 to 12.00
- Tuesday:
- 8.00 to 12.00
- Wednesday:
- 8.00 to 12.00
- Thursday:
- 8.00 to 12.00
- Friday:
- 8.00 to 12.00
In the afternoon only by appointment. -
Luxembourg Consumer Protection Association (ULC)
Luxembourg Commission for Travel Litigation (CLLV)
- Address:
- 55, rue des Bruyères L-1274 Howald
- Phone:
- (+352) 49 60 22 205
- Fax:
- (+352) 49 49 57
- Email address:
- contact@cllv.lu
- Website:
- https://www.ulc.lu
European Consumer Centre
- Address:
- 271, route d’Arlon L-1150 Luxembourg
- Phone:
-
(+352) 26 84 64 1
The telephone helpdesk is open on Mondays, Wednesdays and Fridays from 9.00 to 12.00 and on Tuesdays and Thursdays from 9.00 to 16.00.
- Fax:
- (+352) 26 84 57 61
- Email address:
- info@cecluxembourg.lu
Related procedures and links
Procedures
Links
Further information
-
Luxemburgish Consumer Protection Association (ULC)
Website
-
European Consumer Centre Luxembourg
Website
-
Financial products and services
on Your Europe
-
Over-indebtedness
on the website of the Ministry of Family Affairs, Solidarity, Living Together and Reception of Refugees
