For me this is acceptable. They are clear and upfront about the overdraft cost, there’s no hidden fees and no ridiculous penalties for automated processes like declining a payment.
Saying “we’ll give you a free overdraft, look how great we are!” And then charging £20 because you were a few pennies short for a direct debit is morally reprehensible in my opinion
5 Likes
Clearly staff aren’t going to air grievances on the forum, but I would say that you can tell by their posts how well they are looked after at Monzo, and not just financially. The fact that they appear willing to respond 24h a day is a clue!
3 Likes
Do I wish the Monzo overdraft was APR based rather than fixed price? Yes of course, but it is not unethical, no one (to my knowledge) opens a new Monzo account already £x overdrawn … so don’t use it.
p.s. I am in no way simplyfying the hard work it takes to get out of debt, I myself am currently working my bottom off to get “sorted”
2 Likes
You can tell speaking to staff. Calling up RBS is very different to Monzo. I’ve never felt like the customer service operative at RBS is proud of the company they work for and I don’t think this is something you can force. I might be wrong and Monzo HQ could be a workhouse with whips etc but I have been there, spoke to employees and feel that Monzo values their staff
This is much more important to me than a couple of percent interest which will work out at a few quid a year
1 Like
Indeed. In twenty years of HSBC, I have never been invited to their offices for a beer with the customer service team. I dread to think what Monzo spend on free food! 
3 Likes
Sorry TTJJ I hope I don’t sound like I am “attacking” your views, I like your posts because they ask important questions so if I appear critical it is not meant personally and is always only meant to be debate.
4 Likes
True, I’d rather bank with someone who gives free beer to customers than £20 million bonuses for crashing the economy 
2 Likes
I guess the answer for those guys is to hold off on CASS until they are in credit. Monzo couldn’t have been clearer about the charges, which immediately sets them apart from most banks, and the fact that those with large overdrafts will still only pay 50p a day with no other fees for declined items etc is actually very good value. Of course, it would be more expensive for some, and they would be stupid to switch until their situation changes. I have occasionally been guilty of buying into deals and then finding I’m locked into something I wasn’t expecting. I can’t see that happening with Monzo.
2 Likes
A year I remember well!
A lot of these users will be paying ridiculous hidden fees though so they might still be better off with Monzo. If your bank offers a free overdraft and then slaps you with a £20 fee for bouncing a direct debit then that free overdraft suddenly costs a lot plus it’s usually an unexpected cost. I would rather know that I’m going to owe a fiver if I dip into my overdraft on the 20th. If I’m always in my overdraft then that’s bad but should probably pay it off with a cheap loan instead which Monzo would be in a good position to recommend
2 Likes
Ah - Tewkesbury Abbey!
1 Like
Indeed. This is the whole (long term) point of Monzo. Hopefully once prepay is out if the way, the journey can accelerate.
1 Like
HSBC money laundering scandal
Barclays Libor manipulation scandal
RBS small business scandal
Lloyds PPI scandal
That’s the Big Four banking players right there, since the global credit crunch. Ethical businesses?
4 Likes
But these banks are still very much up and running with a substantial number of happy customers
Customers that are not willing to switch and still remain very loyal
So why is that ?
If everything where so black and white why are these banks still functioning
In respect to overdraft charges etc, we seem to have forgotten that these charges where put out to the members to decide
It’s our fault as much as Monzos to what is now being charged
Don’t quit 
Your voice is just as important as that of a Monzo guru who cannot see beyond Monzo tinted glasses 
We need debate and variety in our views not just stereo types
7 Likes
Not trying to shoot you down but I have a different opinion and believe discussion is a good thing.
Of course it’s about money but it doesn’t have to be just about money. More and more businesses are aiming for some social responsibility where making money is important but not at any cost.
I don’t trust any of the big banks, I trust that my wages will be in my account and bills will be paid but only because the government forces them to do so.
If a major bank thought they could get away with making some extra cash from the slave trade, drug dealers, arms sales or abusing people’s trust they will do so without hesitation.
I’m hopeful that Monzo will be different even when they get bigger and actually give people a different choice.
I might be naive and Monzo may start peddling dodgy loans and actively try to drive people into debt but I don’t think they will. Maybe I’m just an optimist 
3 Likes
Monzo will not be able to offer any financial incentive if they are not making money. They won’t make much money if they only ever offer overdrafts out to the handful of users that have them.
"But these banks are still very much up and running with a substantial number of happy customers
Customers that are not willing to switch and still remain very loyal
So why is that ?"
because there has until quite recently not been much choice 
- sure you could switch between the big banks but there were no other “different” banks, and even switching between the big banks was quite difficult until they were “forced” to offer an easier way to switch
"happy customers " - hmmmm
2 Likes
You’ll be shocked to hear that I don’t think people are being taken advantage of by Monzo.
As Simon mentioned, Monzo also aren’t charging punitive fees - a prime example of how the high street banks take advantage - & will enable users to earn interest on their money via the marketplace. The overdrafts are optional too so if users want, they can get access to all the great benefits that Monzo offers, without any charges, aside from the foreign ATM withdrawal fees.
6 Likes
Yes, very shocked 
I think overdrafts aren’t optional to way too many people, and those who need them, are the ones that find it difficult to switch, and may therefore not be able to use a cheaper alternative, hence my (admittedly purposefully hyperbolical) statement.
As for what Monzo will do in the future: I didn’t know you were in the prophecy business 
I know what Monzo plan to do, but I was talking about what Monzo currently do.