# FCA - Daily overdraft charges will be banned **URL:** \ **Category:** Monzo Chat\ **Created:** [7 June 2019 06:37 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528 "2019-06-07T06:37:11Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![JustJordds](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/justjordds/32/29498_2.png) [@JustJordds](https://community.monzo.com/u/JustJordds)\ **Post date:** [7 June 2019 12:21 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/23 "2019-06-07T12:21:08Z")
> [@mikejhibbard](#): > > I understood that overdraft fees were going to be a primary source of income to help achieve this, but I could be wrong? I don’t think overdrafts was ever going to be its chief “money-maker” - they are expanding into loans which will far and away make more money than overdraft fees will. Not to mention Monzo Plus and talks of expanding the whole “hub and spoke” model which is beginning to emerge. > [@Ralph76](#): > > The fact that I still can’t be offered a small loan when I’ve had all my financial transactions going through Monzo since current account beta days is frankly laughable. I think they are just trying to be responsible with their lending - if they loan out £100,000s and don’t get it back, that’ll be bye bye Monzo pretty quickly. ---
**Author:** ![mikejhibbard](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/mikejhibbard/32/10742_2.png) [@mikejhibbard](https://community.monzo.com/u/mikejhibbard)\ **Post date:** [7 June 2019 13:04 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/24 "2019-06-07T13:04:56Z")
Loans need to be backed by far more expensive capital though and the loan market is very competitive. ---
**Author:** ![mikejhibbard](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/mikejhibbard/32/10742_2.png) [@mikejhibbard](https://community.monzo.com/u/mikejhibbard)\ **Post date:** [7 June 2019 13:07 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/25 "2019-06-07T13:07:09Z")
> This was always on the cards, and despite the argument of 50p or APR… It should result in many more people paying _less_ money to the banks, which is a good thing. …not if that money is what funds the banks operations. Margins in retail banking are wafer thin as it is - which is why high street banks charge so much for overdrafts; it is one of the few areas where they can actually get some inocme. ---
**Author:** ![anon83436563](https://avatars.discourse-cdn.com/v4/letter/a/8baadc/32.png) [@anon83436563](https://community.monzo.com/u/anon83436563)\ **Post date:** [7 June 2019 17:17 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/26 "2019-06-07T17:17:45Z")
If the banks cant charge a different rate for pre-agreed and non agreed overdrafts then surely this will just encourage more people to go knowingly overdrawn. This could end up being a cheap non agreed loan arrangement for some people. I can see people setting up multiple bank accounts and using each as a payday loan type arrangement without the high interest charges. ---
**Author:** ![anon99402360](https://avatars.discourse-cdn.com/v4/letter/a/5e9695/32.png) [@anon99402360](https://community.monzo.com/u/anon99402360)\ **Post date:** [7 June 2019 17:49 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/27 "2019-06-07T17:49:39Z")
Not usually one for conspiracy theories, but this in my head explains why Plus came out and felt so rushed. Looks like Monzo knew this was going to happen and needed to substitute revenues onto a different product. ---
**Author:** ![JustJordds](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/justjordds/32/29498_2.png) [@JustJordds](https://community.monzo.com/u/JustJordds)\ **Post date:** [7 June 2019 17:52 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/28 "2019-06-07T17:52:37Z")
![Monzo%20Conspiracy](https://global.discourse-cdn.com/monzo/original/3X/6/5/653b705fd279016b27cd5762972da803161fd2ef.jpeg) ---
**Author:** ![anon72173902](https://avatars.discourse-cdn.com/v4/letter/a/b38774/32.png) [@anon72173902](https://community.monzo.com/u/anon72173902)\ **Post date:** [7 June 2019 17:55 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/29 "2019-06-07T17:55:16Z")
I would have flagged the living shiz out of this if it wasn’t so true. ---
**Author:** ![JustJordds](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/justjordds/32/29498_2.png) [@JustJordds](https://community.monzo.com/u/JustJordds)\ **Post date:** [7 June 2019 17:55 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/30 "2019-06-07T17:55:59Z")
Sorry 😬😬 ---
**Author:** ![anon72173902](https://avatars.discourse-cdn.com/v4/letter/a/b38774/32.png) [@anon72173902](https://community.monzo.com/u/anon72173902)\ **Post date:** [7 June 2019 17:57 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/31 "2019-06-07T17:57:13Z")
It’'s ok, just stop posting truth. We all know this is Fox News 😹 ---
**Author:** ![anon47498122](https://avatars.discourse-cdn.com/v4/letter/a/d07c76/32.png) [@anon47498122](https://community.monzo.com/u/anon47498122)\ **Post date:** [7 June 2019 18:01 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/32 "2019-06-07T18:01:40Z")
I can see banks withdrawing overdraft facilities if customers try that on and perhaps banking facilities being withdrawn for those that try it. At the end of the day, this is where credit scoring comes in, so if someone does attempt to do the banks over, it should be stopped in its tracks on a credit check. ---
**Author:** ![JustJordds](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/justjordds/32/29498_2.png) [@JustJordds](https://community.monzo.com/u/JustJordds)\ **Post date:** [7 June 2019 18:02 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/33 "2019-06-07T18:02:39Z")
Okay, i’ll go back to spreading Fake News from now on… ---
**Author:** ![neovo](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/neovo/32/33453_2.png) [@neovo](https://community.monzo.com/u/neovo)\ **Post date:** [7 June 2019 18:21 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/34 "2019-06-07T18:21:58Z")
I disagree The ruling isn’t coming in until next April Monzo always need new revenue streams - Plus wasn’t because of this ---
**Author:** ![coffeemadman](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/coffeemadman/32/124177_2.png) [@coffeemadman](https://community.monzo.com/u/coffeemadman)\ **Post date:** [7 June 2019 20:31 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/35 "2019-06-07T20:31:31Z")
Or, on the flip side, banks might finally start preventing transactions going through if you don’t have the funds available. ---
**Author:** ![SC95](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/sc95/32/30201_2.png) [@SC95](https://community.monzo.com/u/SC95)\ **Post date:** [7 June 2019 20:49 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/36 "2019-06-07T20:49:48Z")
Chip is chipping in on this > **[Let’s kill the overdraft](https://www.getchip-community.uk/community/2019/6/7/lets-kill-the-overdraft)** > > Just as we get ready to launch our radical new overdraft replacement (SmartCredit - the borrowing half of ChipX), the FCA have announced they want to put an end to ridiculous and complicated overdraft fees. In a stroke of luck, we’ve been taking a... ### On Monzo ![Screenshot_20190607-214532__01](https://global.discourse-cdn.com/monzo/original/3X/2/b/2b3da36e1453c003662e9e16682f499811e28147.jpeg) ---
**Author:** ![WillP79](https://avatars.discourse-cdn.com/v4/letter/w/94ad74/32.png) [@WillP79](https://community.monzo.com/u/WillP79)\ **Post date:** [7 June 2019 21:08 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/37 "2019-06-07T21:08:13Z")
Not sure how 50p a day is not transparent! It may be super expensive at low borrowings, but it’s certainly not a hidden charge. It couldn’t be simpler or more obvious…? Also people say it exploits the poorest. Aren’t the poorest more likely to be overdrawn by more? If I was only £20.01 overdrawn, i wouldn’t consider myself poor. ---
**Author:** ![mmccart1](https://dub1.discourse-cdn.com/monzo/user_avatar/community.monzo.com/mmccart1/32/119081_2.png) [@mmccart1](https://community.monzo.com/u/mmccart1)\ **Post date:** [7 June 2019 21:17 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/38 "2019-06-07T21:17:25Z")
Agree…also how many others notify you immediately of the charge or the accrued charges and date of charge I’ve found the high cost to low overdraft has changed my behaviour and I’ve reduced purchases that would be cost me fees and only use it for the large purchases where I’m waiting to money cash from savings 50p a day super easy to work out xdays X 50p = overdraft fees ---
**Author:** ![WillP79](https://avatars.discourse-cdn.com/v4/letter/w/94ad74/32.png) [@WillP79](https://community.monzo.com/u/WillP79)\ **Post date:** [7 June 2019 21:24 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/39 "2019-06-07T21:24:34Z")
> [@mmccart1](#): > > purchases where I’m waiting to money cash from savings 50p a day super easy to work out xdays X 50p = overdraft fees Hate to be the grammar police, but…que? ---
**Author:** ![anon72173902](https://avatars.discourse-cdn.com/v4/letter/a/b38774/32.png) [@anon72173902](https://community.monzo.com/u/anon72173902)\ **Post date:** [7 June 2019 21:38 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/40 "2019-06-07T21:38:39Z")
lol @ Monzo now getting called out by others… I wonder how long it takes the Monzo Marketing Spin Machine to spit out some drivel about how Chip are bitter and just hating on Monzo and that this solution is the best and in the best interest for everyone as they are the saviours of banking. ---
**Author:** ![anon31596025](https://avatars.discourse-cdn.com/v4/letter/a/5fc32e/32.png) [@anon31596025](https://community.monzo.com/u/anon31596025)\ **Post date:** [9 June 2019 16:48 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/41 "2019-06-09T16:48:16Z")
A post was merged into an existing topic: [Removed Posts - June](https://community.monzo.com/t/removed-posts-june/69732/3) ---
**Author:** ![nickh](https://avatars.discourse-cdn.com/v4/letter/n/7ea924/32.png) [@nickh](https://community.monzo.com/u/nickh)\ **Post date:** [7 June 2019 21:45 UTC](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528/42 "2019-06-07T21:45:18Z")
> [@WillP79](#): > > Also people say it exploits the poorest. Aren’t the poorest more likely to be overdrawn by more? If I was only £20.01 overdrawn, i wouldn’t consider myself poor. Monzo don’t offer overdrafts to the poorest (it would seem). Plus, if they did, it’s likely to be a low amount, which still makes the equivalent APR very high. Even on their max £1,000 overdraft, the APR would be higher than most other banks. Monzo’s overdraft is _much_ easier to understand - There really can’t be any arguments about that, and I don’t think there are. But it’s also significantly more expensive (in general), than most other banks. [Previous page](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528.md?page=1) [Next page](https://community.monzo.com/t/fca-daily-overdraft-charges-will-be-banned/69528.md?page=3)