TSB Mortgage refusing to accept Monzo for direct debits

Monzo Chat
1

I recently got a mortgage offer (yay!) but they refuse to allow me to pay it using a Monzo current account (although Starling is apparently okay!)

Apparently they don’t like it due to the way verification is completed with Monzo.

I’m not too fussed - I’m just going to use my second current account and set up a standing order from my Monzo to ensure it stays funded, but it’s still a bit irritating that some of the major banks are still not accepting of newer banks.

I might try to change the direct debit to Monzo using the app once the mortgage has commenced and see if they accept it then… has anyone else successfully switched their direct debit source to Monzo with their TSB mortgage in the past?

2

DD is regulated scheme, so there’s nothing Monzo do or don’t do that really.

There’s been mention of a few places that can be like that, I think LV was one (I use them fine)

If you have a spare account that you don’t care about, you could set it up with that bank and then CASS that account over and the direct debit will come with it.

3

That seems anticompetitive. Someone from Monzo should take a look…

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4

I get the feeling that this will work. Once you’re all up and running, make sure you come back here and let us know how it goes.

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5

Well thats probably very prudent of them. Monzos AML and user onboarding was very lax in the early days.

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6

Monzo should be shutting out a bank like TSB at this point! All those dodgy legacy systems.

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7

What are you talking about? Vindictiveness isn’t a rational business plan.

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8

Making a joke about legacy banks… :expressionless:

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9

I took it as an ironic take on the fact that that’s what TSB seem to be doing by shutting out Monzo customers (or at least implying that they’ll need to move banks before they’ll do business with them).

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10

Did you get this as an official response or was it just said over the phone by the person you were dealing with?

11

I asked my Case Administrator at the mortgage broker I’m using to query them on my behalf after they refused.

She got in contact with the Business Development Manager at TSB and got clarification that Starling is accepted, but Monzo and Revolut are not.

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Open a TSB current account. Stick the DD on there, then CASS that straight back to Monzo and it’ll be fine.

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