It’s a reason to make large purchases with a credit card in order to have the ability to use Section 75 protection.
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The other banks are reimbursing through chargeback immediately though, so users of larger banks know they’re protected.
Thomas Cook can’t dispute the chargeback saying they did provide the service so there’s not exactly a risk of that, it’s just Monzo can’t afford the reimbursements.
That’s fine, but credit card companies don’t have any discretion as to whether or not they reimburse the customer. The protection is much better for the consumer.
What happens when Monzo starts offering credit cards then? A 10-week investigation etc. If they can’t afford to do it now they’re not going to be able to afford to do it then. They’re not making any profit let’s remember.
They will follow the regulations around Section 75 protection like every other credit card provider. If they ever get around to offering credit cards. It seems a tad unlikely, given that they have yet to offer a full banking service.
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I should of used Credit card, but that is irrelevant. This is a comparison between monzo and there competitors and they are losing.
They are. And doing so in many other ways, as well.
But you asked if this was a reason not to go full Monzo. In my view it isn’t. There are lots of other reasons not to go full Monzo, or more precisely, there are lots of reasons not to go full any bank.
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Ah maybe that was my provocative phrasing. I don’t want that to distract from the real issue here that customers are going to have to wait a much longer time for there refund, if they get it all, compared to using the same payment method with some of the traditional banks.
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I’ve just checked the Santander website for comparison. The information they provide is broadly similar to Monzo’s, the main exception being that they make no reference to any timescales.
I suspect that banks who are processing chargebacks immediately, will be doing so on the basis that they can reclaim the money if the chargeback fails.
Whilst they technically could, they absolutely will not be doing this.
I obviously can’t prove this but the banks will just take the hit because they care more about the service and can afford to do so.
If you are less likely to successfully get your money back by applying for a chargeback with Monzoz compared to other banks, that’s definitely a negative.
However, it’s not one that would put me off using Monzo though… If I wanted protection I’d just use insurance or a credit card that actually has protection, not a different bank’s debit card that possibly might have a higher chance or get me the money a bit faster. A higher chance but still no concrete protection, when there are options out there that do provide concrete protection, doesn’t seem particularly attractive to me.
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This is so unlikely. They are not gonna revert the refund once they have given it to them
I hope you’re right. Nothing would surprise me with banks, though.
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I booked flights with Thomas Cook using Monzo debit. A friend booked the same flight using her Barclays debit card. We both initiated chargebacks once we learned about the Thomas Cook bust. She got on the phone with Barclays and her money was refunded within a few minutes. I spoke to Monzo through the chat and was told the refund is NOT guaranteed and would take 3 months.
From now on I’m not taking Monzo seriously. It’ll only be used for play money for coffee etc. I would be using a REAL bank for real purchases in the future.
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Monzo are a ‘real’ bank just like all the others.
It’s just that Monzo don’t have the money to risk refunding you first like the other banks in case they don’t get it back. I’ve said before it’s only because the larger banks would prioritise service over losing small money to them.
I know which one I’d prefer though.
So my CC provider sent a generic ‘we can see you’re affected by the TC boom bangalang’… and they outlined similar advice as found in this/similar blog posts, but basically finished every piece of advice with ‘contact us for more info’.
Which I did… and basically, they couldn’t have been any less interested in my queries and simply ‘forced’ me down the S75 route. It was like their script was ‘anyone affected, fill in S75’…
I’m personally less interested in the personal financial aspect, as long as I get home ok, that’s fine for me…
I just wanted to ask a few basic Qs about my rights etc, and what I could/should expect. But hey ho…
hi im not with monzo
just hoping someone can help me
I booked with Thomas cook airlines on 8th of may
and well they went bust wasn’t insurance has my holiday wasn’t till june 17th 2020
and I like charge back scheme but Lloyds taken forever is any idea u can do help me
Well. All I can say, that other banks are not that quick either if you paid with a debit card. When Low cost holidays went bust, took me 4 months to squeeze the money out of Barclays (after I filed a complaint) and even then I’ve been told that if they can’t get the money back from Low cost holidays, I’m liable for the whole sum.
With the Atol protection it can take a while due to the numbers
This article has information which may help
Big banks for me from now on