Ok so if you accepted the offer, applied & were successful, this is what happens when they withdraw the overdraft -
Once you’ve chosen your limits, we’ll ask you to read, understand and accept an overdraft agreement.
It confirms the amount of your overdraft, how much we’ll charge, and how you can cancel. It also explains that overdrafts are repayable “on demand”, meaning we could ask you to repay your overdraft immediately at any time, although we usually give you 30 days.
That’s a bit of a loose definition of “notifying”. Doing it immediately and withdrawing the overdraft would not be notification to most people. Telling someone a few days or weeks in advance yeah sure
The cancelled mine although I hadn’t used it so never had anything to repay, I still have other credit cards and overdrafts to use so it’s really no big deal. It just means I’ll never be full monzo.
I don’t think this is the point. The point is the credit facility the OP had originally, and had for three months, was withdrawn…whilst it didn’t impact him, it COULD have had an impact on his credit score if he was relying on the £1000 to cover an debit on his account (used incorrect debit card for example).
Just a helpful message stating that the overdraft will be withdrawn in 72 hours, for example, and exact reasons why, so the customer understand why, is all that was needed.
They say that they can withdraw the credit in their T’s & C’s, this isn’t news
The difference here is that Monzo seems to properly reevaluate whether they should still be lending to users once the user has borrowed money elsewhere. I know that, that behaviour’s not typical of banks but it’s a good thing. It means that Monzo doesn’t lend people money that they can’t afford to repay.
It’s just one of this s*** happens situation, I’ll still use monzo as my spending but that’s all it’ll ever be. I just like the security of an overdraft on my main account if that makes sense but each to their own.
Everyone needs and wants different things and we don’t always get what we want, that’s life.
Got to admit it has made me think twice before going ‘Full Monzo’. I very very very rarely drop into my overdraft, but for my own peace of mind i need the security of knowing there is a buffer (of more than £20) there.
They also mention utilisation %, which is the actual factor.
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tbutz
(🏳️🌈 Producer of "low value commentary")
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I’m pleased that Monzo are taking a responsible attitude towards offering credit (i.e. overdrafts). I’m 100% behind their action, however I do agree a little more notice would have been advisable, rather than a “we’ve cancelled your overdraft, okthxbye” message.
