I’m shocked this is still a thing, but I just moved to Tower Hamlets and they don’t allow the Monzo sort code to be used to set up a direct debit…
Might be worth to contact them directly if their online form refuses to set up a DD with your Monzo account.
They specialise in this kind of thing and will get in touch with them. I believe it is against some rules/terms/law or something to refuse Monzo
Be good to know if that’s actually the case. Be interesting to read.
We pay council tax with Tower Hamlets, just changed it recently, had no problem with set up and all OK for a few months.
You can set up scheduled payment in the Monzo app instead.
It’s against the Bacs DD Scheme Rules.
It’s literally 1 of Bacs 8 essential rules to follow: updating your sort code database frequently (at least every month).
It’s not and it’s nothing to do with Bacs.
Many companies refuse monzo as they cannot pass the required AML checks, because they only report to TU. There is many examples on the forum.
Now I know that’s certainly not true and it definitely isn’t “many companies”.
Let’s leave it to the experts though. I’m sure someone will pop in here soon to clarify
Here is a blog post where Monzo details the most common reasons for non-acceptance:
And at no point do they say it breaks any regulations to not accept, glad we got that sorted.
I’m detecting petulance?
I thought we were discussing your comment where you claim that many companies refuse Monzo because they only report to one credit reference agency? And that this forum is full of examples?
Who said regulations?
Which is correct. It is against the Bacs scheme rules.
To be a member of the DD scheme you must update your sort code database frequently, and a business that choses to charge using the DD scheme must accept any bank that Bacs has authorised. Your speculation isn’t necessary - the rules are black and white.
Are you paying Direct Debit with Monzo?
If yes, then is it a simple case has the op entered the correct account/sort ?
Theres a few threads were 04 entered as 40 is HSBCs allocation so the check probably goes nope not a valid sort and doesn’t give decent feedback that is the reason.
Many companies do do that!
But the point is companies can decline monzo (or whoever) for almost any reason they see fit. There is no law/rule/reg to suggest otherwise.
If you can’t pass identity and AML checks, the company doesn’t have to do anything. You won’t even be allowed to start the DD.
They can’t blanket ban accounts correct, and why would they want to?
Strangely enough, I’ve experienced something similar before (but with utilities).
The initial form to signup to a service hasn’t accepted the sort code, but the form to change DD details has been fine with it. I suspect they were using multiple sort code databases in different parts of their application.
How did you get onto identity and AML checks?
OP (& everyone else) is discussing the sort code not being accepted.
Yes we pay by direct debit