random eamail saying that my account is being closed and no one at Monzo can tell my why. Very basic email thought it was a scam email but monzo customer services says it from them
Hi Jason,
Welcome to the community! Unfortunately this is quite common with all banks if they spot something they donât like/arenât sure about in your transaction history. It doesnât have to be anything untoward, just something the bank deems risky.
You can complain and if you receive an unsatisfactory resolution, take it to the Financial Ombudsman but they take a long while to respond and usually tell you that as you can choose who you bank with, banks can also choose who they offer accounts to.
So the easiest and least painful thing to do is to move on to another bank and try to avoid behaviour that you think might have triggered it. This is usually crypto or business-like use.
Just speculation but as they say your outstanding balance has been returned to source, I would assume there was something about that payment you received they donât like.
Further speculation, but from reading similar threads on account closures (and not freezes), the most common links seem to be accounts that are used (solely) for gambling, cryptocurrency trading and the likes with little to no âreal world useâ. Of course, none of thatâs illegal but itâs a bit of a compliance nightmare I imagine.
Crypto?
Would be interesting for you to expand on what you had been doing/using the account for. What were the outstanding moneyâs due in? And I assume you had a zero balance or you would suddenly have no access to all your money if you used it as your main account
When did this account closure take place? Was it recently or some time ago?
âŠalthough that email does refer to previous communication.
They canât tell when the account will be closed or why - never brought cryptocourrency - mainly used as a holiday account to save and spend
That wonât have caused your account to be closed. Itâs whatever else youâve done.
Yeah like the guy who kept receiving large sums of money on an almost daily basis and instantly transferring it back out. That was literally his entire feed with no other activity.
He though it was normal behaviour but others would (and did) disagree.
I do this. Monzo is a spending card.
(Although, it does depend on the definition of large)
I think they mean bank transfer in > bank transfer out to another account. That looks a lot like money laundering.
If youâre using it as a spending card youâre probably bank transfer in > one or many card payments out. Nothing wrong with doing that.
I spend occasionally. I mostly use it for moving money between accounts. For example, someone pays my monzo and I transfer it directly to a proper bank account.
Why?
Yeah again Iâm sure thatâs completely fine. Mainly because youâre sending the money to another bank account in your name.
The sort of thing that looks dodgy is when:
Joe Bloggs transfers ÂŁ1000 into Matt Smithâs Monzo account.
Matt Smith then transfers ÂŁ1000 from his Monzo account to Peter Parkerâs account.
Two days later:
Demi Lovato transfers ÂŁ900 into Matt Smithâs Monzo account.
Matt Smith then transfers ÂŁ900 toTrevor McDonaldâs account.
Mattâs Monzo account then gets suspended
In isolation thereâs nothing dodgy about it, but when youâre repeatedly doing it and sending and receiving money from different accounts it starts to look like laundering.
Which reminds me. Demi and Matt both owe me a tenner.
Because reasons.
Banks know and expect people to use accounts like that. Money in and out. Transfers. Transactions.
Accounts arenât closed for âno reasonâ or at ârandomâ there will be issues that people just either donât think is dodgy or donât want to admit it.
If I remember correctly they were selling dodgy vouchers on ebay or something? Then withdrawing from PayPal to Monzo and then transferring it straight out. Itâs likely that things caught up with them and Monzo wanted no part it all the mess (plus they werenât making any money )
Iâll try to find the topic later.