I agree totally, monzo should just say no in this case.
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I wouldn’t be surprised if it disappears soon.
I don’t think it’s great, but I don’t think it’s terrible either really.
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It’ll be referrals to Capital One next for declines in Flex 
But jokes aside, i hope they remove it too.
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Nice level summary. Have a like from me
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So it’s newish then 
has anyone actually come across these referrals in the wild?
Through the Monzo app you mean?
I’ve seen it come up, I’m eligible for £2k flex and overdraft but a loan is a no, though loans do checks through Experian, and the others through TransUnion.
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Yes through the app, this is literally what the thread is about. I’ve got a loan so wasn’t sure if they displayed this option to most customers applying and getting turned down or just some. I guess it’s based on Monzos credit scoring system and what the 3rd parties have told them would be a potential customer for some
I thought you meant just similar types of referrals to other companies - no monzo specific.
But yeah, came up for me first time the other day.
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Been running a week or so now.
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I’d honestly they rather refer people to the money advice service or https://www.findyourcreditunion.co.uk/ if someone with bad credit needs a loan.
But that does not make them money
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Totally agree. They should be doing whats right for the customer.
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How do you know?
Monzo has pretty odd criteria. Won’t offer me a loan. Barclays are happy to throw money at me on the other hand.
I thought this was a pretty cool addition. Until i learned they’re payday lenders. That’s not cool. It’s predatory however you try to justify the purity of their intent.
Maybe desperate people will find them anyway. But don’t hand them a teleportation device and seek to profit from their hardship.
There are many distasteful analogies one could use to demonstrate how morally depraved Monzo are for doing this. I won’t use them. But others might, and they’d be justified in doing so, given the issues closely associated with such financial hardship and the very severe consequences that can follow.
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Nothing about either site Monzo takes you to is about payday lending though, it’s a loan company offering payments back from 12 - 60 months albeit it a higher interest rate. That’s not a payday loan, if they do offer payday loans elsewhere under that brand then fair enough. However Monzo directs you to an actual loan company.
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Payday lenders are legitimate loan companies who offer low value loans with a high rate of interest. That is exactly what these companies are. It’s all they offer.
Perhaps you’re thinking of loan sharks?
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You’re stretching the definition, suggest you readjust your own internal bias towards high interest loans.
CAB will help you with the actual definition of a payday loan. Neither of these providers fit that criteria.
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You could say high cost (Finio/Bamboo) and payday loans (wonga etc) all prey on the same kind of people though.
However it’s sugarcoated by formalities.
Both immoral ways of lending, and sadly exist.
The FCA should be doing more and cap APR on loans/cards to a reasonable figure, not that current 100% max in fees/interest or whatever it is.
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You could try to justify it that way, however they aren’t payday lenders at the end of the day.
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With the greatest respect, CABs definition describes these companies. It’s actually the one I was using for the basis of my classification.
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Not one bit, but if that’s how you want to carry on to justify it to your own mind, then fair enough.
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