Monzo - Frozen Account

Mandy278

Hi
I am after some advice please and not for people to accuse me of being a drug runner or a criminal like some facebook page for Monzo has.  My partners Monzo account was frozen on Friday 15 May.  Done all the usual research on this and realise there are hundreds of people in the same predicament.  However, my main query is, because Monzo won't answer this question and we have asked numerous times, his self employment payment from the HMRC was sent to this account on Friday.  On Monday morning it is showing in his app as Upcoming and greyed out.  All I want to know is will this payment be returned to HMRC, when and how long will it take.  He is really worried that they will hold onto the money until they have carried out their "investigations".  However, I would have thought a BACS payment would be returned like the faster payments we tried to test it, but that was instantaneous, his BACS payment is pending it seems to me, but surely they wouldn't allow this payment into a frozen account.  He mainly uses his Monzo to get his wages paid into, buy a sandwich for lunch and use to pay for TFL etc, so not really Ronnie and Reggie are we ha ha.  However, will never use Monzo again so they can freeze it as long as they like I only want a definitive answer re the HMRC payment, but they won't talk to him.  We have raised a complaint and escalated.  Thank you very much.  

jonesMUFCforever

''Your self employment payment'' going into your partner's Monzo account? - I know the account was frozen prior to this going in but have you had other credits belonging to you going into his account? Have you been using it for business purposes?
My opinion is that the credit will stay pending on Monzo until their investigations have concluded - there is nothing you can do to speed this up.
Was there any reason the money could not be paid into an account in your name?

Mandy278

It is not my self employment payment it is my partners, typo sorry.  No it is not a business account.  He does not use it as a business account.  He is self employed but a sub contractor to a firm that pay his wages each week.  We have used Monzo since March 2019 with no issues and it has always been the same payments each week.  I am now wondering if this why they froze it because they think he is using it for business, however, any payments regardless of where it has come from should surely be returned to the sender, as if the account was closed shouldn't it?

colsten

I don't know the answer to your Q but I reckon you'll find out in the next few days whether the money gets returned.

A couple of questions/comments though: Presumably his account is a personal account, not a business account? It therefore shouldn't be receiving any payments to do with a business. Let alone a business that isn't in his name. What is the reason that you don't use your own business account for your self-employment?

Your partner should swiftly get an account at a different bank, and have his wages paid into that new account from now on. The investigation into his Monzo account could take weeks, even if the HMRC payment gets returned to HMRC.

Mandy278

It is a personal account.  Its not a business payment it is a payment from the HMRC pretty much like his tax rebate.  The account is in his name.  He gets paid as a subcontractor but does his own tax returns so not a business so classed as self employed.  However, if Monzo just asked questions rather than freeze your account and treat you like a criminal this would all get sorted much quicker.  

Mandy278

Again, my question is should a BACS payment be returned to the HMRC from a frozen/suspended account.  Other transactions have so surely this would be the same.  

Shakin_Steve

Hi Mandy. The short answer to your question is nobody on here knows. 

jonnygee2

 All I want to know is will this payment be returned to HMRC

It's unlikely that it will be returned - this could only happen if they rejected the payment entirely. But, if it was returned, it would take three working days to land back in HMRC's account. 

Monzo should be answering this question so I think you are right to raise a complaint against them. Even when your account is blocked (which does happen from time to time) a bank ought to be communicating with you and there's nothing that would prevent them from giving you this basic info on process.

born_again

And even if it returned to HMRC. It will go to a holding account. Given how busy they are at the moment. It could take them as long as Monzo to sort out.

penners324

Your having a self employed payment from HMRC being paid into a personal account is the problem.
Monzo have decided your conducting business through a personal account not a business account in breach of their T&Cs.

Mandy278

Yes I agree if it is because they think he is a business then is that any reason not to talk to him and treat him like a criminal.  Its an honest mistake as he doesn't have a business he is simply a self employed sub contractor.  His wages are paid in by his employer like everyone else.  He even has his tax deducted by the company but because he does his own tax returns each year he is classed as self employed (i didn't get it either 4 years ago when he was trying to explain it to me).  However, if Monzo just spoke to their customers first 9 out of 10 times they will see its a simple explanation.  The stress they are causing him by not talking to him or returning his rightful money to hmrc is making him ill he hasn't eaten for two days and is really down.  It is a very bad way of trading not to even talk to us, he can't even ring them as they won't talk to him, I understand the "tipping off" scenario but honestly these funds are coming from the government not some overseas dodgy guy.  It is simply quite unfair.  I really don't know what we can do, is it worth contacting the financial ombudsman now or his there something else we can do, do you think?  It is a lesson well learnt as he and I will never have another online bank, high st or nothing.  Even if Monzo did unfreeze his account how can we trust them not to do it again, it will be closed, as will mine, as soon as this is resolved.  I've moved all my money out of Monzo anyway as luckily I still kept my Santander as I was always wary and rightly so now it would seem.