I have been given 2 months notice of account closure but currently have a loan with Monzo.
How will the repayments of this work once the account gets closed please? Would moving my account via the CASS move the loan repayments or would I need to setup a payment plan with the new bank to pay monzo?
You will need to set up a payment plan with Monzo before your account closes. Reach out to support ASAP.
I have contacted them and theyâve said itâs been escalated but when I spoke to them on the phone yesterday they said I would get an email once the account is closed about how to make the loan payments
Well thatâs your answer.
Theyâll give you an account number, sort code and reference. Youâll pay your loan that way.
Perfect
Still a bit puzzled as to why my account is being closed all of a sudden.
Iâve been with monzo since 2019! They canât provide a reason apparently
There could be a myriad reasons for why you no longer fit their risk appetite. Have you ever bought / sold crypto, do you do lots of returns / refunds / disputes, do you have lots of incoming eBay transactions from selling stuff, etc.
Thereâs been a fair few refunds and disputes recently so this could be why?
Is there a way of rejoining monzo once an account is closed
If you had closed it then yes, but if youâve been exited itâs unlikely youâd be accepted again in future.
Really annoying
Highly likely if you keep disputing things.
What if theyâre valid disputes though?
Valid or not, it would appear youâre too much of a risk.
Weâre of course assuming its this, when it could be any combination of multiple things. Either visible to you or otherwise.
I must admit it is this sort of behaviour that really puts me off having any significant money with Monzo, not that i think they are dodgy but rather if they decide to freeze your account because their algorithm takes a dislike to you then you could be cut off entirely, for who knows how long, from your money.
I think it is much safer to have the majority of your bulk savings with a separate provider rather than with your transactional bank, and have just enough with them to cover some emergencies.
Eggs all in one basket sort of thing.
Iâve heard of people getting their accounts shut down after disputing transactions before. I guess some people abuse the system, so the bank probably has AI that assumes anyone who disputes more than average is abusing it. But itâs disappointing they just find it easier to close the account than investigate.
I was actually too scared to raise a valid dispute recently with Chase because I thought it might be a risk of having my account frozen or closed, and I had a bit of money in their savings account at the time.
Every bank can and will do this.
Iâm sure the odd dispute here or there is fine. If youâre constantly disputing things then youâre too much of a risk for a bank because each dispute will cost them time and money, and theyâll see you as someone who canât be trusted to make sensible choices with their money.
But as with everything in UK banking, people abusing the system and scammers are ruining everything for everyone else.
Every bank can and will do this.
Totally agree, I used Monzo as an example - what I mean is Marcus, Trading 212 or NSandI etc. are less likely to do this because you dump money in and then typically leave it, you donât use them for daily transactions and therefore are less likely to be frozen out of your cash.
ALL banks do this. Just the generation of customers vocalise the experience online which makes it look like monzo is the bad guy. Barclays are horrific for it, same goes for NatWest, but with those having older gen clientele they arenât likely to moan online.