Making Overdrafts Available

And you continue to raise that point, repeatedly. Every couple of months in fact. For someone who doesn’t want or need an overdraft you are very keen to keep making the exact same point

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Precisely because it strikes me as a very good point to which no one has yet provided any plausible answer. Either Monzo is using very risk averse and simplistic algorithms, in which case it is killing profitability and annoying potential clients like myself who would be a good source of income, or it is a cockup.

But you would not as you pay off your credit every month right?

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As I said, last year I put about £30 or 40K through Monzo. That made them money.
Are you suggesting that Monzo only extends overdrafts to people whom they are certain would use the overdraft and pay charges on it?
That would seem a bit evil.

I strongly suspect they would consider profitability vs risk as I’m sure any rational process should. As for card spending, my apologies I misunderstood what you meant

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Then why haven’t you done what Simon suggests and contact in app to see about a redecisioning? They might just need more information that your credit report doesn’t show.
Monzo has said they are very conservative with their lending but they aren’t going to share their lending criteria publicly

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Indeed, any rational firm would. But one wonders how rational the Monzo process is if their algorithms see £40K a year spend on the card and yet refuse a £100 overdraft. It’s ridiculous.

Because as I have said I don’t need or want an overdraft, I am simply pointing out the fault in the current system.

You’re right, that wouldn’t make much sense. If you follow Simon’s suggestion they may even be able to tell you some particular factors in your case that don’t match their appetite for overdraft customers. I’d be quite interested myself to know what sort of thing puts them off :thinking:

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You haven’t mentioned Handlebanken this time, you closed that account now?

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It’s very simple, and I can guess the answer, which is that their algorithm turns down anyone who has had a default. That may or may not be a good business model for them, but it is one adopted by very few other banks or credit card providers.

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It’s spelled Handelsbanken, old boy. I have a great relationship with them. Thank you for asking.

Good to know, young lady

Goodnight

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I don’t see there’s a fault in the system - it’s up to Monzo who they lend money to. If they don’t want to accept the risk of lending to someone with a default, that’s up to them. Other banks have different appetites for risk.

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Well, it all depends on what you mean by a fault in the system.
Banks only make money by lending to people (and yes I know Monzo has a new paradigm for making money some other way but that’s nonsense)
If I were a bank manager and saw that a customer was spending £40K a year on his account and was debt free and he asked for £100 overdraft I would give it to him.
It could be that Monzo has a near zero risk appetite but the fact is that they know nothing about me other than what Callcredit tells them, and that Callcredit information is worthless.
So as a result they have lost my £40K a year spend by annoying me.

:sleeping::sleeping::sleeping:

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Maybe, just maybe, Monzo have seen your posts here and understand you don’t want an overdraft. And have therefore, not reached out to offer you one.
I know, crazy theory, but stranger things have happened!
Really strange concept, but Monzo are pretty much breaking all the rules with banking.
Only, you keep banging on about it and it’s getting a tad boring now.
Will you ever get your overdraft that you don’t actually want?

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If you really want an overdraft, go with Starling. From what I saw they are pretty liberal about giving out credit so you won’t have any problems there.

Monzo is taking a cautious approach with their overdrafts and may not be willing to lend to you at this time. But frankly, why would you want an overdraft, especially considering you seem to be well off financially - and why would you want probably the most expensive overdraft ever when you can get a much better deal from the other banks?

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Monzo gave me a larger overdraft than Starling :laughing:

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