I think before customers go to FOS because Monzo won’t offer them a free overdraft , or indeed cut the interest rate to zero on their overdraft , they should look at what the FCA is saying … I think from Monzo numbers 30 % of customers are using Monzo as their “primary personal accounts” - defined in the FCA advice as -
- A primary account is the account into which a customer would usually receive, or would have received, their main source of income. Main source of income would normally include salary, wages (whether employed or self-employed) or pension payments.
Those Primary Account customers are what this advice is intended for and relate to , and then, additionally those in financial difficulty due to covid 19, the advice is not for anybody with a… insert banks name.… card, that feels they might like a free overdraft facility ( who wouldn’t ? ) … the advice is not for every user of Monzo who has a convenient overdraft with them as an additional source of funds apart from their main banks , and use their card as a "spending card " -
Why wouldn’t you go full monzo thread gives an indication of who is using Monzo bank almost as a “pre paid card” - the FCA guidance , in my opinion would exclude them from “the offer”
Having said all that Monzo WILL help out wherever they can, but I don’t think they are under an obligation because of the FCA advice to every Monzo customer with 10 quid sat in their account and a 100 pound overdraft