Merryn Somerset Webb in her blog, cites another case of a bank being forced by the courts to give up an attempt to charge a customer several hundred pounds for running up an "unauthorised" overdraft and wonders why they still try it on like this. As she points out, the moment the bank honours the debit, they are authorising the overdraft. They could just say no. It's hard to resist the conclusion that it is just another scam to get customers to pay for "free" banking.
it would surely be better to refuse payments beyond an agreed limit, and instead send an instant text to the account holder saying something along the lines of “We have had a request for a payment that would take your overdraft beyond the agreed limit. If the payment is urgent please contact us immediately to discuss your options.” she points out, but the banks still appear to yearn for the time before the coming of the internet, when everything had to be sent in the post and cheques really did take almost a week to clear, instead of electronic payments having to be artificially held up. They still don't do e-mail, so it is unlikely that they would send you a text about an exceeded overdraft limit. Why should they, when they can keep stumm, fine you and then charge you interest on the fine?
The banks may want to live in the past, but, with luck, the present might just be catching up with them.