Customer Loyalty & Overdrafts

Monzo withdrawing the £20 free overdraft buffer on April Fool’s Day. It’s not them that are the fools it’s us the Monzo customers that are allowed this bank to get too big for it’s own boots and in turn this is being reflected in the way Monzo is changing things for the worst!
Reinstate the unwarranged free Twenty Quid overdraft!!!

I’m with you!

I’ll get writing my placard!



Move to Starling that’s what I’m doing!

Yes because they aren’t changing their overdraft structure either following changes in the rules from the regulator…


Who gave you the right to a free overdraft?

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Yeah let’s!

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Monzo would really love to keep their overdraft pricing structure because they believe it is more fair, but the changes are dictated by new legislation from the regulator, the FCA.

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YES! Welcome John, such a familiar strident tone you have, uncanny! But YES, yet ANOTHER example, of… er… two… where Starling is deemed ‘better’ than Monzo.

Alas in this instance, Monzo are doing what the FCA have told EVERY bank to do so, kinda hard to beat them over the head with this one.

But welcome, I look forward to your contributions, given how little I know about Starling, it’ll be an education.


It’s a shame they’re wrong, considering the APR is absolutely crazy for £20.01. It would have actually been decent value for people using £1000+ of overdrafts but at the time it was capped to £1000, which was eh.

FCA hasn’t banned fee-free buffers at all, so I don’t know what you mean. Not that I’ll beat Monzo over the head too hardly because their lowest interest rate for overdrafts is actually pretty reasonable, along with their mid rate. Under the new changes to major banks, anyways

Surely the answer is simple.

Don’t use an overdaft.

No fees.

Easy :man_shrugging:

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Write to the FCA. Ask them why they’ve forced banks to change their offering.

FCA has already written to the big banks asking for a justification of the new 40% overdrafts, given them a very short time limit to answer too

You don’t know what I mean because I didn’t say that. As others have said, there is a dialogue driven by the FCA around this, you know that.

That’s not what I said

but they dont need to answer if they dont want to ? :man_shrugging:

The topic is around the buffer - of which the FCA hasn’t forbidden. The interest rates are irrelevant.

You’d be correct. My apologies for not providing as comprehensive an answer.

The FCA believed that banning fixed daily fees would mean 7/10 customers would be better off on unarranged overdrafts but didn’t anticipate banks raising their regular overdrafts to 40% as a response

So the FCA then asked banks to justify their new rates.

If they don’t answer presumably the FCA will further regulate and perhaps cap overdraft interest rates as a response, they’re clearly not happy about the sudden raise (which is why banks now have to justify their pricing)

"considering the APR is absolutely crazy for £20.01"

lol …or you could have just paid the penny back during the month to avoid the ‘crazy’ interest rate

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It’s a hypothetical, to highlight how bad the interest rate was. Even at £200-300 borrowed it’s not a good rate though, to be fair. Very easy to calculate for sure, but not a good rate

yes it is hypothetical - to borrow 1 penny for a whole month would be an extortionate interest rate - as you rightly pointed out :man_shrugging: …and …if you carried on borrowing that penny for the whole year …woooooo that interest rate would be akin to loan sharking