This. Monzo is bank stop seeing it differently.
I didn’t flag this post. In fact, I don’t think I’ve flagged any of your posts.
This topic is temporarily closed for at least 4 hours due to a large number of community flags.
Coming back to this, the one time I’ve seen something similar offered was basically with a challenger bank in the States that prided itself on being both environmentally and socially responsible. Aspiration came up with the idea to ask customers to “pay what is fair” for their current/savings account combo and investment services, and to provide all extra services “at cost”, so that fees for things like international wires are based on what it costs them, with no additional markup. Even that felt like guilt-tripping to me, so I couldn’t possibly imagine straight-up donating to a company to remain a going concern unless it reinvented itself in such a manner.
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They were practically ordered to give the interest free overdrafts to customers in need by the FCA, like most UK banks. It wasn’t out of the goodness of Monzo’s heart.
[The FCA] sets out our expectation that firms provide, for a temporary period only, exceptional and immediate support to consumers facing temporary difficulties with their finances […] This guidance builds on Principle 6 (‘A firm must pay due regard to the interests of its customers and treat them fairly’). It sets out the FCA’s expectations for firms to provide coronavirus related support for customers who are experiencing or reasonably expect difficulties with their finances at the current time. […]
Measure 1 - Interest free overdrafts for those in difficulty
Where a firm provides an arranged overdraft to a customer, and the customer has difficulties with their finances, or reasonably expects to have difficulties with their finances, due to the impacts of coronavirus, the firm should, at the customer’s request, assist the customer in the following way:
- No interest should be payable in respect of up to £500 of the balance of the arranged overdraft.
- Where an arranged overdraft has a limit of over £500, firms should not charge interest on the first £500 irrespective of whether the balance exceeds that amount.
- In the case of an arranged overdraft with a limit of £500 or below, the entire balance should be interest-free. […]
There are also more information in measure 1 and also a measures 2 about interest and later the repeated use of overdrafts. It is also governed by the Equality Act.
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