Lombard rules / unfair overdraft rates

The original thought behind Monzo pots was the ability to allocate specified sums (from the overall balance) for particular purposes.

Suppose I have an income of £1,000 and my mortgage is £300 and bills are £150.

I’d put £300 in the mortgage pot and £150 into a bills pot which would leave £550 of funds. I’d still have a thousand pounds, but I’ve earmarked £450 for certain purposes.

How it works behind the scenes with Monzo I know not. But the theory was to allocate certain sums of money so that the remainder was unallocated and available funds.

If we hold the original concept for a moment, then Monzo does risk being opportunist in terms of making money out of customers. I wouldn’t go as far as predatory, as was mentioned earlier.

Regardless of T&Cs, credit agreements, FCA etc., Monzo’s actions, now, are not what I’d have expected three years ago. But the Monzo of today is not the Monzo of three years ago.