Do we know yet if, come launch Monzo will be reporting our accounts (those without overdrafts) to the credit reference agencies ?
I ask as my current legacy bank reserve the right to close the account if you open a new one elsewhere (I’m assuming they are using CRAs for this and aren’t also say looking at debit card transactions and transfers)
No it’s a basic account with Nationwide (had credit issues a few years ago). They restrict these to one per person, as supposedly they aren’t profitable. I actually have 2 for budgeting, as they dropped the restriction for a few months while changing t&cs
I hope in a few years to get a mortgage and they are best hope until credit file clears at 6 year mark. In order to keep them onside I’d switch 1 account (probably not via switch service though)
I eventually found their current account T’s & C’s (which I had to open in Internet Explorer, not Chrome ) & having skim read them, I can’t see any mention that you shouldn’t open a current account with another bank?
Based on your description, it sounds like they might mean that you can only open one of their current accounts at once?
tell that to everyone paying them unplanned overdraft fees
Wouldn’t it would be a moot point - the T&Cs would give them the option (not definite action) to close the account, regardless of what Monzo reports. The CRAs list bills and contracts which NW could cross-reference, so if you have a mobile contract or insurance not being paid from the NW account then the obvious question is where is the Direct Debit going?
IMO, I’d assume the bank would rather keep you than lose you and would at worst offer to upgrade you to FlexAccount (the overdraft is optional). Or they may take no action (I’ve found one forum post offsite where they said they had 2 major bank basic accounts inc. NW). Closing the account is usually a last step.
Agree that as per T&Cs it is a somewhat moot point, but if Nationwide don’t know about the account it’s much less likely to trigger the term. I would be surprised if Nationwide were prepared to go to much effort in terms of cross checking you describe(not least due to not all accounts being reported everywhere), but a notification from a CRA about a new current account is much more obvious
While I’m not aware of having them enforce the term (which has changed a bit over the years, from a only one account of type with Nationwide, to what is there now), I would like to have all the information I can to balance the risk.
I’m assuming he’s getting at whether Monzo will report to the credit agencies with the fact you have a current account and any associated overdrafts.
@HrachG - A wild shot in the dark with an answer but more than likely they will indeed report basic details to the CRAs because it’s a give-and-take relationship. Are you wanting to hide your debts or something along those lines?