Monzo giving two months’ notice of account closures

I wonder what would happen if Monzo closed your account and you had a loan with them for example. Would they demand the whole balance back?

Unlikely. I don’t see any reason why that would be.

Theoretically they could yes.

In reality they would likely come up with some payment plan for you.

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Some of the posters have been asked if they are resident outside the UK (which would be a ‘Brexit ruins everything’ issue), but none have said that is the case for them.

If it does happen for anyone, it won’t be because Monzo have missed or not picked up on something, it’ll be because if someone signed up in the UK and is now resident in Spain, this won’t be apparent to Monzo until either the customer tells them they’re no longer resident in the UK, or the account patterns reach a certain threshold. I have a vague recollection that towards the end of last year Monzo were asking selected people to confirm their tax residency, which would be directly related to this.

Presumably the conditions attached to the loan would say what would happen in this instance. I’d check, but I don’t have a loan and can’t find any relevant documentation on their website.

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Every bank does this… and has the legal right to do this without giving you any specific answers.

It just so happens that because Monzo has a forum like this, that other members of the public, press etc. have got hold of it and blown it up.

It’s bonkers that Monzo is getting flack for following guidance on what will be standard practices within the banking industry. :man_shrugging:t2:

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As my thread was closed (just like my account is) I am posting what I said here:

Hello everyone, after looking online for some help I saw this place and just want to ask why Monzo have closed my account for? I have been a user since early 2018 and this has been my main account since then also. I have always had my wages paid in every month on time, direct debits go out on time and the odd transfer from my child’s account so I can get some bits and pieces, basically I am a normal person that does normal things.

Today I get a mail saying that my account will be closed in two months!!! What have I done?!?!

The only things that have changed recently is that unfortunately last year I was made redundant due to covid so did the natural thing and claimed universal credit and job seekers allowance (something I have never done before) although this does not match what I was earning before it is still a liveable amount.

I will also add now that from what I have seen I am not the only person who has had their account closed due to a change in circumstances such as covid redundancy and subsequent Universal Credit claims

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What would be your grounds for seeking damages for discrimination? There is no proof that Monzo are targeting people with protected characteristics and no, income or being a profit-generating customer is not a protected characteristic

Throwing around baseless claims of discrimination is what is so wrong with the world today

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What’s bonkers is that Monzo hasn’t smelled the coffee and seen an opportunity to raise the bar on “standard practices” and be more transparent to those customers who’re having their accounts closed but who’ve not done anything fraudulent.

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Yep. It’s bonkers as well… but if you search hard enough, every bank does this, without any seeming reason to do it. :man_shrugging:t2:

People are mixing up legal reasons to close an account (instantly and with no reason given) with a bank choosing to (2 months notice and no legal reasons they cannot say why).

The first is industry practice.

The second is Monzo’s choice. Other banks have been shown to explain why (ie. your account is dormant etc).

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Barclays, RBS (and Natwest) have all been known to close banks with ambiguous reasons for doing so. They just aren’t as public in any forums like this.

There is a grey area, though. There are cases when there’s nothing clearly illegal about what a customer is doing so they can’t close the account instantly, but there are enough red flags being tripped that they consider the customer too high risk to keep. In those cases, as explaining why the accounts were closed would reveal information about their financial crime metrics, tipping off probably still applies (and even if it doesn’t, it’s still sensitive information that Monzo - indeed, any bank in the position - wouldn’t want to make public).

I’m not saying that’s absolutely the case with people involved in the recent threads - as I said back in my very first reply, I don’t know and I’m not going to guess - but I mention it because it illustrates that it’s not quite as black and white an issue as suggested there.

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I’m not bringing any claims about discrimination? I only clarified that Ts and Cs wouldn’t have any bearing on such a claim. MichaelW’s implied that Monzos Ts and Cs would prevent such a claim, which is incorrect.

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The grammar pedant in me can’t help but point out that you inferred, and what MichaelW may have done is implied.

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As at least one victim in all of this has claimed that they use their account in exactly the way Monzo would like (salary in, bills and spending out), this seems to me by far the most likely reason.

The next best alternative in my view is that an algorithm has gone postal and kicked accounts out unexpectedly.

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I hope something like this has happened and an incorrect value has been inputted somewhere.

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Of course, but that’s really frustrating because almost every debatable issue can have a “well not all cases fit that scenario” and debate ceases.

I don’t think tipping off in a purely legal sense allows for two month’s notice. It absolutely might be in the bank’s best interest to not tip someone off but I can’t see any evidence that the law allows for 2 month’s notice.

I’ll more than happily retract that with evidence.

And yes other banks do close without notice. I don’t think that’s right either. I don’t think because I think a reason (however vague) should be given and other banks don’t is a valid response. We are talking about what Monzo should do, not what other banks do do.

And please, yet again, there is a difference between the law and having to give no reason and no notice. I’m not debating that.

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The grammar pedant in me might point out that was a vocabulary error not a grammatical error :wink: But anyway, I have fixed it for you.

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I knew there’d be something I’d get pulled up on even after checking and double-checking what I wrote before I posted it :rofl:

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Well, if you are going to be ‘that guy’ :smiley: . I couldn’t resist.

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