Overdraft charges. This isn’t a big issue for me but I can imagine some customers are severely impacted by the crazy 40% charge that Monzo inflicts on people. Surely seeing as the government and Bank of England have put pressure on the mainstream banks to cut these charges during covid ( and seeing as most have done this) Monzo should follow suit?
They have plenty of options available to those struggling to repay their overdraft or loan as a result of the outbreak.
The trouble with removing all fees and giving people a brand new free overdraft in times of boredom/money worries, is how do you pay that back?
“Wow, I really need that £500”
And then when this is all over in x months, then what? If you don’t get another job right away or you can’t really afford to pay back what you spent on trainers and clothes to make you feel better, do Monzo never charge you? 2 years down the line when you’re still using their money, what happens?
You’ve just described by intrest free student overdraft
As mentioned above, if you’re struggling now or in fhe future. Monzo always ask that you chat with them so they can help you This is by far the best option.
I think they should do it on a case by case basis. Throwing interest free overdrafts around risks profiteering off vunerable people who may get stuck in there once these promo rates are over.
In reference to the “crazy 40% rate” - this stems from legal changes made to not be able to do transparent daily fees (I’m not a fan of this legislation)