I’m kinda disappointed to see an article today regarding changes to overdraft fees. Admittedly it just one article but other article headlines are suggesting the same.
I read the following :
“Monzo is to ditch its 50p daily charge and instead bill customers on a sliding scale, depending on their credit score” .
“Those who go into the red will be charged annual equivalent rates of either 19 per cent, 29 per cent, or 39 per cent”.
“Under Monzo’s charges, someone with a good credit rating can expect to pay £7.20 for borrowing £1,000 for 15 days – 30p less than the current 50p daily charge would cost them”.
“But customers paying the 29 per cent rate would pay more at £10.58, and those paying the 39 per cent rate will be charged £13.72”.
“Customers are being given the option to either switch to the regime now or stay on the current 50p-a-day rate until April. Ofelia Botella, Monzo’s marketing project manager, said: ‘We think 87 per cent of people will be better off or see a monthly change of less than £1”.
I feel kinda disappointed because I thought the whole idea of Monzo was to bank diffently? I have always felt I have been in safe hands with Monzo which I’ve never felt with any bank I have used. But this looks like to me the 13% will not benefit which will be the poorest and most vulnerable people are being penalised due to poor credit ratings.
Monzo for me has helped me manage and shape my finances and I’ve never felt more in control of my money in my life. Again I’ve never had this from another bank and I can’t thank you enough. But suddenly it doesn’t feel like an even playing field like a regular bank.
As an idea do you, or could help by adding ways to help the 13% increase credit ratings or scores swiftly and efficiently through Monzo? So they would be less penalised.