In the spirit of being (hopefully) helpful, it feels like there’s a few things that could be done in the short-term to help here:
Be explicit…
in the terms, overdraft page, in-app help - and everywhere else - that, where possible, transactions will be declined if you haven’t explicitly agreed an overdraft with Monzo.
That where transactions can’t be declined for whatever reason, the standard overdraft terms will apply* (£20 buffer, 50p/day - assuming they do?)
In the longer term, it really does feel that how Monzo treats direct debits where there are insufficient funds in the account needs to be revisited. Others have said previously about retrying during the day, but it seems that simple notifications might need a tweak if there is an issue over weekends etc.
Offered in the spirit of being helpful and looking for pragmatic solutions to what seems to be a bit of a confused situation. (I’m deliberately leaving aside the issue of explicit permission for a soft credit search, as it seems like there are more immediate and fundamental issues in clarity over what the offer actually is).
*I think this is right, but I might have misunderstood. Also, it would be useful to know if this will be reported to credit reference agencies and have a negative impact on your profile.
If offline payments push you into negative, you have until midnight to add funds or you will be charged if you do not have an overdraft facility and affect credit rating. You do not have a buffer
I’d be interested to hear from any credit controllers whether an overdraft can HELP ones creditworthiness long-term. And the optimal way to use it in that aim: eg go £30 into the red for one day a month? £100 one week twice a year???
I’ve never had one, or any loan or credit card. I doubt I will need any of the £1000 facility offered by Monzo, but it would be nice to have it there for emergencies.
And if I could find out the most lender respected overdraft management pattern, it presumably might improve my thin credit file? Does it generate the monthly flow of nice green ticks that my utility, mail order and mobile payments do?
A ‘Find out about overdrafts’ prompt appears on the Account screen on the latest iOS Testflight. It then gives you some calculations on what an overdraft may cost and you can check if you’re eligible. Maybe this is part of the new flow?
I just got the same. And going through the flow I got the same outcome as you. ️
Though I do have to say it is a welcome addition to the app as it now gives great clarity about the overdrafts offering and confirms eligibility status.
@BethS I am a little concerned at the last line in the response wording. If the COps can provide more context then great. But if not (I don’t see what they could add?) you may get a lot of messages that are not adding any value to Monzo or the customer.
Edit: does this also mean as I proactively went through the flow you have now completed a hard search on my credit file? If not then great but if yes then I think this needs mentioning in the flow.
I was on chat with COps regarding a Golden Ticket issue and asked if they could shed some light on why I wasn’t eligible (based on the last screen). They just gave the standard message that they couldn’t give any info (which is fine by the way) at this time and they were continuing to tweak overdrafts. So maybe that text is still a little redundant for now…
Any way this can be hidden in the app? Read the info and then clicked I wasn’t interested but it’s still on the account page as a little yellow heading thing.
Maybe after clicking no thanks it could vanish to the help section?
It’s just tempting me where it is now