I recently was due a payment for overdraft charges on the 1st of July, I don’t pay these until July 2nd. So was given a late payment marker on my credit file, only found out now. I wasn’t given any notice of this.
On 31st of June I was in a terrible accident and taken to A&E and rushed into theatre for emergency surgery to repairs tears in my shoulder and arm, I was then sedated on morphine for 2 days. This was totally outwith my control I couldn’t think about paying bills. It’s a dreadful time for me and my family, I had asked collections department for a good will gesture to remove it and they refused.
Any advice? I’ve wrote to the CEO Ts Anil and CFO Sarah hanning, resolver as well.
Has anyone else had a similar experience with this bank.
Sorry to hear about your accident, hope your recovery is going well.
In terms of your overdraft missed payment marker; the bank isn’t obliged to remove these in any instance.
These are usually reported a month in arrears, so if you’re not paying them on time or scheduling these payments (assuming they are around the same every month), the onus is on you unfortunately.
While they may not remove the marker; a repayment plan in place to help you pay down your (assumed) overdraft to avoid similar instances may be better suited.
Hi, thank you for your response. I was one day late and this is the only time as I was in surgery and on morphine. It can removed as a good will gesture am I correct in saying this. ?
It was one day yes as I was on sedation medication, I was in an accident and rushed into surgery on the 30th of June late at night. Payment due 1st of July, made the payment 2nd of July. I didn’t receive any charges( I received no notification via the app either. I was just wondering if anyone has been in a similar position and the outcome. Dreadful time of it just now.
If you’re using an arranged or unarranged overdraft, you have to pay any charges on the 1st of the month. If you don’t, we may have to report that you’re behind on your overdraft payments to the credit reference agencies. This could make it harder to borrow later.
This was taken from monzo sole trader overdraft page (can’t seem to find the standard account page).
So it seems per their terms, what they have done is factual and correct - which a bank must oblige.
You can ask them to remove it given your circumstances at the time but they can quite simply say no, and that would be the end of that.
You might want to look at this link if they decline to remove it, as while the missed payment won’t be removed; it allows you to add your circumstances at the time.
When you make any future application for credit, all applications will be deferred until the underwriter has had chance to review your file in depth.
They’ve essentially had the time from using the overdraft and being notified top of feed how much is due by end of month, to be sure payment is ready to be collected on 1st.
I agree it’s within the rules, I just haven’t seen that happen very often. I’ve never missed a Monzo payment but also would have thought they would have allowed some flexibility on it.
I’ve missed a payment by 1 day with a legacy bank and not been penalised for it, they seemed to have a 1 or 2 day grace period. Though I guess some banks (like Monzo) enforce their deadline a lot more strictly.
Don’t think anyone’s mentioned that one late payment marker is a very minor thing after a month or two.
If you applied for credit right now it might be a red flag to some lenders, but when the next month shows as on time (and then the one after that) it all pales into insignificance and looks to them like 1 late payment out of 60 showing it was an accident or a one off which is insignificant to a lender. If you have multiple late payments and all over the place then that’s a different story.
I’ve had a few late markers over the years when everything wasn’t always so automated and I forgot the dates to pay etc. it’s annoying to know your perfect record is blemished but seriously it had absolutely no affect on my life whatsoever (and my perfect record returned).
I’m not sure I understand, the overdraft charges are usually minimal (a few pounds per month) and get automatically debited from your account. Why didn’t the automatic debit go through?
The balance was zero, I had took the overdraft down from £1000 to £950, in trying to get rid of the thing. I was trying to sort that out but had problems verifying my identity due to camera being damaged. I have since took the over draft down to £500 and £50 balance to cover any charges. It’s quite roofless to do that to someone over 1 day. Took my credit score from good to very poor on Experian.
Well I guess it was -£1000? I’ll be honest, this wasn’t really a problem that started on June 31st.
It’s good you’ve paid it off - being at the bottom of your overdraft is going to be a lot worse for your credit affordability than one late payment indicator. Ignore the Experian rating though - focus on not being in debt and avoiding your overdraft and you’d be in a better place to apply for credit (if you need to!). The effect of the late payment marker will fade very quickly.
Looks like it was £1000, they paid it off down to £950 and adjusted the actual limit to £950, which on 31st June it was -£950, with interest on top, taking it over the actual limit.
Then by the 2nd they’re actually in arrears as all through June it would’ve shown them in the app how much interest was due to debit on 1st.
@Ferguson maybe set a reminder in your calendar for 30th/last working day every month to check how much is owed, or set a standing order to cover the interest and then some - say £50pm paid on 1st. This gives you grace to adjust and avoid future missed payments should anything prevent you doing so in the future.
Do keep us updated on the outcome though, personally think emailing the CEO and CFO for a non fault issue is extreme, but their minions will pick it up and respond as soon as practical.