Overdraft wait


(Richard) #1

My interest in Overdrafts is not to have one - although I will get one - ( and the anti OD narrative often in the forum shows a level of ignorance in it concerning the numbers of people in the UK who do use overdrafts) My issue is that Monzo just need to offer then because they are a basic offering, without the option it is a bit of an intro bank account like those aimed at 16-18 year olds!

It just seems to be taking an inordinate amount of time if you consider the start of trials began in the summer 2016 and that by then they should have been well on this road` to develop the systems, yet nothing firm in sight.

The financial hardships team sounds interesting and a classic novel Monzo take on what can become a trap. I hope it genuinely is interested in assisting people and not just the debt recovery which all banks have by another name!


(Allie) #2

What’s wrong with the basic bank accounts aimed at 16-18 year olds? I don’t actually see a problem with that, as long as they don’t have horrible, frankly a bit lazy restrictions (like Metro Bank’s basic account banning foreign currency transactions - presumably since exchange rate fluctuations might let them dip a tiny bit below zero. But that could be handled by forcing a certain funds availability margin - say, 10%, in the authorisation).

I think one account that just gets banking right should be fine from 14 to 114… :slight_smile:

18+ features like an overdraft can then be bolted onto the same account (and if I come across anti-OD, it’s because it’s an expensive form of borrowing I’m not convinced should be offered so freely… lots of people use other expensive loan services as well, doesn’t mean they should be on the market. OD is great if truly used for an emergency and paid back almost immediately).

Banks have to provide this by law, but the thing is Monzo does seem to be doing it right. But of course, debt recovery and risk avoidance are part of building a sustainable bank. Monzo do seem to be doing well trying to prevent rather than collect… time will tell. Limiting how many and how large of overdrafts are offered, however, is part of avoiding problems…


(system) #3

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