Federal law requires that at one point each year the balance may not exceed the equivalent of two months' payments towards taxes and insurance.

For instance, if payments towards those items total $100 a month then at least one month's balance during the year cannot exceed $200.

A couple of weeks later his balance exceeded $11,000.

An error can be raised if the customer's balance would exceed the allowable credit limit.

If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply.

For participants having balances of $200 or more, upon separation the following options are available (spouses' rights apply when the balance exceeds $3,500):

Members whose balances exceed specified limits (positive or negative) are obliged to move their balance back towards zero by spending or earning.

If the balance exceeds the agreed facility then fees may be charged and a higher interest rate might apply.

If the balance of Federal tax payments exceeds $100,000, it must be paid within 1 banking day.

Alternatively, there is the cash management option, a current account paying high interest rates when the balance exceeds £5,000.