The Halifax, part of the Lloyds Banking Group, told Lesley Ross, 60, of Swansea, Wales, she could expect $8 daily fines and would blacklisted if the debt was not paid within 28 days, The Sun reported Thursday.
"It's incredible to think they'll send out this kind of letter over such a tiny amount of money," Ross said.
Ross said she complained about the letter when she went into the bank last week to pay off the overdraft.
"I told them what I thought about the letter and they were very apologetic," she said. "They even offered to compensate me but I told them I wasn't interested in compensation. That wasn't the point of my complaint. I am more concerned about their attitude to their customers."