Monzo overdraft

Monzo Chat
46

good luck , hope you get what you want from other banks

47

:v:t3: Stay safe bud, and hope you’re able to get any help you need when you need it - which hopefully won’t be required.

1 Like
48

Given today is now the 14th is there any update as to how Monzo will be helping those suffering from covid, should they use the existing financial difficulties route, or is there a covid specific route ?

49

as in this or are you looking for something more specific ?

or this from typing coronavirus in the help section

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50

Not currently though!
Nearly all have reverted to save their customers money - apart from Monzo.
Starling 15%
Natwest 19%
Just to name two.

51

Problem is Monzo can’t revert as they weren’t on a % overdraft

52

You can now apply through chat

3 Likes
53

Monzo may want to confirm with Martin Lewis the status of their ÂŁ500 OD facility:

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54

Information about interest rate capping on overdrafts is here:
https://monzo.com/help/budgeting-overdrafts-savings/capped-overdraft-fees-coronavirus

How it works

At the end of the month we’ll calculate what we would have charged you on our fixed fee pricing (including the £20 fee free buffer) that applied before 1 April 2020. If your interest charge is going to be more than the fixed fee, we’ll cap it automatically at the lower amount.

If you have a limit of up to ÂŁ1,000
We won’t charge you more than 50p per day for the days you’re overdrawn, which means a maximum charge of £15.50 per month.

If you have a limit greater than ÂŁ1,000
We won’t charge you more than 50p for the days you’re overdrawn £1,000 or less, then £1 for days where you’re using £1,001–2,000, and £1.50 for days where you’re using £2,001–3,000. That’s a monthly maximum of £31 and £46.50 respectively if you’re overdrawn for your full limit for the whole month.

Also as speculated previously:

The arranged overdraft interest charges will be capped from 14 April 2020 for three months.

Meaning from 1st April → 14th April, you’ll be charged your personalised interest rate.

3 Likes
55

So this hasn’t been updated? :frowning:

My understanding is the new Corona rules mean the minimum Monzo can do is

  • charge the lower of 50p/day or 39% APR to existing overdraft customers - so people are not paying more than they were previously.
  • give ÂŁ500 of interest free overdraft to those in need and using Monzo as their main account.

A lot of banks have gone further, its very noticable that Monzo have stayed quiet on this for so long…

2 Likes
56

Monzo have said they’re capping the fees, and also offering £500 interest free overdraft to those that apply + use Monzo as their main account.

There are a lot of banks that are offering the £500 0% buffer without asking, and for everyone - but that’s costly for Monzo to do, so pretty silly thing to implement.

Secondly, most other banks have actually gone for a 19.9% interest rate at maximum which is just slightly lower than the 50p/day/ÂŁ1000 amount that Monzo are offering.

Are you a Monzo customer, with an overdraft, who has been affected by coronavirus @dan2?

57

I’d misread the earlier info, thanks.

58

It’s a shame that Monzo decided to wait until right at the last minute.
I understand they need to make money but I just think this is a slip up.

59

Why? None of the stuff could have been implemented before then; they released it at the time it came into force to stop people being confused?

What do you think is a slip up?

3 Likes
60

Failure to act in a timely fashion.
Last bank to announce on deadline date.
Not the Monzo I know!

61

They didn’t miss a deadline though; I’m confused that you’re annoyed they stuck to the required dates and released clear information.

Also, not to mention that since coronavirus started they’ve told anyone with any financial difficulties to contact them.

Fundamentally that information hasn’t changed, all they’ve done is clarify that in 15 days time people will have their overdraft capped.

So you’re annoyed they didn’t announce something that would benefit people in 15 days time earlier? :man_shrugging:t3:

4 Likes
62

Yep your correct.
If all other banks can do it why can’t Monzo?
I appreciate we are looking at it from different angles so we will have to agree to disagree.

63

They could have implemented it last week?
It’s the delay and leaving it right to the last minute that I find poor really.
We are obviously looking at this from very different angles so we aren’t going to agree.

I think it’s a failure to communicate.

65

15 days is not a long time when you have many important things to think about to ensure theres a company still there when this is all over, some of the things that i can think of and im not at board level are:

  • Staff furlough, how many can we keep
  • Funding, how much runway do they have
  • Plus, what happens now?
  • BOE interest rate change
  • Loans, how does everything affect how much monzo can lend
  • Vegas office, impact on this and staff

Im sorry i can definitely see where youre coming from but I just think monzo have alot on the plate at the moment like we all do. I cant really be upset that they waited to make a decision on this until the last moment when every decision at the minute seems huge for the long term

3 Likes
66

My understanding is that the FCA were still consulting on guidelines last week. How could they implement something that hadn’t been fully agreed by the FCA?