Personal guarantees


I’m wondering if Monzo Business accounts are backed by personal guarantees. Their terms seem to imply it;

Joint account holders will be individually as well as jointly liable. This means we can ask any of you to pay back money you owe us.

Taken from:

The same terms also seem to suggest they’ll decide when a payment that takes you into your overdraft gets made, even if it’s unarranged. Is this correct? Can you state you never want to go into an overdraft?

I thought the entire point of a limited company was limited liability, but Monzo seem to be side-stepping it?

Are you conflating business and personal terms?

Edit: looked at the link. There will always be a chance for the account to go into unarranged overdraft. If you spend on a plane, Monzo can’t decline to pay the airline back when they land and put the transactions through, even if your account is empty.

So you’ll be liable for those payments. But they’ll only be able to pursue it the same way any bank would.

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Or Monzo are!

That quote is taken straight from the business account terms and conditions! :grimacing: @FCA

Yes, edited my post. I still don’t see what’s wrong? Do you want online-only cards so that spending on a plane is not possible to eliminate the chance of an unauthorised OD?

But not all Monzo Business account holding Businesses are LTD companies. Loads of them will be sole traders, too.

I seem to remember that they don’t allow Partnerships, but they do allow you to have additional admins on business accounts, and those terms are basically saying that they don’t care which operator spent all the money and caused an overdraft, they’ll still want it back.

I haven’t read it so can’t be fully sure, and I’m taking what they say at face value and in context of the quoted section, but it sounds like Monzo are holding individuals liable for the liabilities of the limited company if you have a business account with them.

Presumably meaning they can come knocking on your personal account door to reclaim money your business owes.

Again, I haven’t ready the terms, just what has been posted here. But that’s what I think they’re getting at and asking for clarity on.

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