Loan administration for closed account

I was a Monzo customer a couple of years ago and closed my account with an outstanding loan balance.

My experience since then has been absolutely appalling, with unanswered emails requesting a settlement figure, great difficulty changing my address (Monzo won’t accept my instructions over email as they say it’s insecure, but expect me to send pictures of my ID via the same medium), and an inability to reopen a Monzo account for the loan as they can no longer link the loan account to my (new) bank account.

It seems they’ve made no provision for what to do when customers close their account. Has anyone else had a similar experience, or have any recommendations as to how I can get information from Monzo about how to pay my loan off? My emails to loanhelp@monzo.com have gone unanswered.

Keeping me in the dark like this in 2023, with only an annual statement to go by, is absolutely unforgivable in my book.

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If you make a complaint, they have (I think) 8 weeks to resolve it, and you can can then escalate it to the Financial Ombudsman Service.

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Email collections@monzo.com or recoveries@monzo.com.

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I had exactly that! So incredibly frustrating. It wasn’t over an account closure, but something else. From memory it was a complaint which had been escalated - in-app chat had failed for me. They emailed me asking for more information so I replied to the email with more info and they replied back and told me they couldn’t accept it via email because it was not secure, whilst in the same email asking me they could accept it via email if I sent a copy of my ID (via email)! Infuriating.

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Why did you close your account? Wouldn’t it have been a lot easier to keep it while you had the loan?

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Monzo definitely shouldn’t make it this hard. But OP made it harder on themself.

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That’s the worst form of security theatre… not only does it not improve security it’s now less secure because you’ve just sent your ID on request over email…

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You can’t keep the account open if you use CASS. Surely Monzo could have anticipated this and kept a loan-only service available on their app!

Oh they do, they made sure they get their money by standing order. But when it comes to giving me information about the outstanding balance or repayment amounts they’re not half as keen to take action to fulfil their obligations.

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They could just be busy. You could rough work it out, pay a lump sum and then wait til they reply to save interest accruing.

Do you want to pay it off or just check what you owe?

Do you use a credit report? That will tell you what you owe and the last update, you could work out what you have paid on top of that.

Hopefully someone from Monzo will see and come back to you properly because it’s really not good enough.

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I read it that they opened a new account rather than re-activating their old closed one. Which explains why the loan is attached to a different account. Could be wrong :person_shrugging:

Yes, that’s how it went. The old account closed under the switch system and I asked if they could link the loan to a new account. They said that wasn’t possible.

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I’ve just had an email from them requesting the selfie and ID, which I’ve again refused to send and have told them they shouldn’t be asking for it.

I doubt they’ll change these unsafe practices based on my experience, but I’m going to fight it anyway.

Once escalated they did send me the information I needed, but that was after escalation and a complaint.

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They do. You pay by bank transfer with reference LN00000000 (Replace zeros with your account number) and FLEX00000000 etc…

But they never reply to tell you how much you owe or where your up to

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You receive an annual statement and they’re probably just busy handling either chronological inbound, or important inbound where they could breach regulations somehow ie not responding to certain things in a timely manner.

You can calculate your payments in ways mentioned above, and then just lump sum it to avoid further interest.

Shouldn’t have to do that.

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Out of interest, why do you consider email so unsecure nowadays?
I mean if you send it into a helpdesk system like monzo and delete it from your sent what other risks are you considering?

For me it’s the behaviour. It’s training people to send highly personal info over what could be unsecure or false which gets me.

Yes, secure messages or “go to a branch” might be hard or impossible for Monzo, but they really need to better here.

After all, it’s not like other options exist

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I mean unsecure as in?

Sadly thats as risky as an email being sent asking you to submit your ID to a 3rd party page when the email has been spoofed to look like Monzo and you are running your own server without proper anti-spam.
I think the whole unmonitored emails (any company) need to be removed. Company’s SHOULD monitor email addresses they send from to deal with confused customers.

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