Sorry, feel this is pretty poor practice. I would have expected more from Monzo on this. If you can tell them in a message to contact CS if they might run into financial trouble. You can send them the reason why the overdraft is being closed without them having to ask. Just my opinion
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Have you contacted them to inform them your credit report is showing no changes?
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I think it would be an improvement if, in the messaging from COps, you add one or more of theseā¦
- State that Monzo only uses Noddle (CallCredit)
- Explain how to get a copy of the report for free (i.e. via Noddle or the statutory credit report or CheckMyFile free trial)
- Say that the decision might be changed in future
- Explain what change prompted the withdrawal of the overdraft, if possible
- State that the Noddle credit score (and the score from other CRAs) has no [direct] bearing on Monzoās decision
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It could be data thatās not yet on the report - as the free Noodle only generates a report every month, but Noodle Alerts offer notice within 24 hours of key changes.
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Most companies only report to CRAs monthly, so youāll likely be paying money for no real benefit.
No. I donāt need it. Itās up to them if they want to remove my UNUSED (nudge, nudge, wink, wink) overdraft for whatever reason.
Oh definitely, but it means you might need to wait up to a month for stuff to appear. Whereas Monzo might have immediate access to that data.
e.g. My report updates on the 28th, but my credit card might report to them on the 30th.
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Overdrafts is currently the worst part of Monzo. It is not up to scratch when comparing to legacy banks and light years behind Starling.
Monzo must go back to the drawing board with Overdrafts.
They need to have a clearer picture of a customer, use more than call credit as an agency, and be able to properly explain why a customer can or canāt have an overdraft.
The current policy is messy, unclear and unfair.
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+1 for this, using all three CRAs would also result in more information to base lending decisions on. Some accounts that I have arenāt even reported to CallCredit (including CreditLadder for rent payments).
Then it could also be possible to corroborate any changes with the information from another CRA.
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Seems an awful lot of people who had changes to their credit files in one goā¦
That being said, at least Monzo can see your credit file. Iām still told they canāt find mine and it hasnāt gone any further than that for months.
My two cent: nobody is doubting Monzoās right to take the funds away, but I do think it doesnāt have good images if they just remove with no notice, whether youāre using it or not.
Iāve had an overdraft with Halifax for 11 years, and I have had periods where my credit file went south and never had it removed. They were happy with my repayment history with them. The same way EE wonāt credit check me for a new line now because they know my payment history as a customer.
I never thought Iād say it, but on this one specific topic I would feel that Halifax have a more personal approach than Monzo.
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Was the information about affected users pushed by Noddle to Monzo?
OR
Did Monzo carry out soft credit check on selected users and decided to remove their unsused overdrafts?
Also, as I didnāt have chance to reply to the user who asked a question some time ago: No, I donāt work for any bank.
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Iām really surprised and donāt think Iām going to go #fullmonzo
I donāt think you understand what a overdraft means for some people.
For myself it was pease of mind that no matter what my bill would be paid. Now thatās been taken away from meā¦
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Why are you even participating in this conversation if you donāt work at a bank?! You shouldnāt express valid concerns if you donāt.
/s
It makes me wonder how often this approach would happen at legacy banks, and generally;
- How often do Monzo review eligibility?
- Is it genuinely new info or is the level of risk monzo is willing to take changing?
- Is there an amount that they would have been comfortable having an overdraft for, even if new info comes in? If Ā£1000 seems risky then Ā£100 might be better and still be a safety netā¦
It just seems like there must be a significant stash of new data to revoke a lot of overdrafts - does that mean some things have changed so dramatically in 3/6 months (etc) that it has a big impact, or something else?
And what about those users who have had new data/CCJs/etc in the Noddle reporting that are actively using an overdraft?
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I have an overdraft with a legacy bank that Iāve had for 5 years. Up until two months ago I had never used it, but one day I forgot to move some money from my savings into my current account. Some direct debits were due, and luckily paid. I realised my mistake a few days later, and put some money in.
Iāve used the overdraft once, for 48 hours, in 5 years, but for me it was there exactly when I needed it, and it meant no inadvertent missed payments.
I can honestly say if the bank had pulled the service (because I hadnāt used it) I would have looked to bank elsewhere.
Iām all for responsible lending, but I think my preference would be to see an overdraft reduced (Ā£1000 becomes Ā£500 for example) than completely removed.
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They have removed third overdraft. Having one in an account allows you to plan financially.
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Interesting that theyāve only withdrawn the overdraft facility from people who arenāt using it.
You have a Ā£1,000 facility but donāt use it and your credit worthiness drops this month - no more overdraft facility for you.
You have a Ā£1,000 facility, use Ā£100 and your credit worthiness drops this month - you get to keep your overdraft.
@richardcadman can you please explain the logic behind this? Iām baffled. Itās almost like the change in credit worthiness isnāt the real reasonā¦ 
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Lack of revenue from it is one possible reason though they unlikely to admit that publicly. They ideally want someone with a lot of money in pots and a Ā£20.01 overdraft on the rest of their account!
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Can you expand on this, please? Cancelling the ovedraft of someone who never uses their ovedraft could improve Monzo profitability?
If they only have overdrafts with customers who use them they get more revenue in fees than if a large proportion do not use them and hence donāt pay fees.
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