Monzo closing my bank account?

sam19901

After being a loyal customer of Monzo for the past eight years, I was taken aback this morning upon receiving an email notifying me of the impending closure of my bank account in 60 days. Regrettably, the email lacks specificity and fails to provide a clear explanation for this decision. I have encountered a series of challenges with certain merchants over the last 4 to 5 months, resulting in my filing of 4 or perhaps 5 legitimate disputes. It is worth noting that prior to this recent period, my account had never been associated with any dispute or questionable activities whatsoever. No crypto dealings, no weird transactions, no gambling. I am left questioning the rationale behind Monzo's actions and concerned about the potential repercussions on my credit profile. Additionally, I am uncertain whether this course of action might lead to the placement of a CIFAS marker on my record. Given these uncertainties, I am seeking insights into the options available to me at this juncture. It is important to highlight that I hold an active loan with Monzo and also rely on their services to manage my mortgage. The unexpected nature of this situation has left me genuinely shocked, as I struggle to comprehend their decision to take such action. Any thoughts?

elsien

They may just have decided that they don’t want your money anymore if you’ve had a number of claims, even if they are legitimate ones. 

It’s likely to be a business decision on their part. There’s not going to be a marker unless they decide something dodgy is going on. 

From previous threads with people having bank accounts closed, if the bank is making a commercial decision, there is absolutely nothing you can do about it. They won’t give you any more explanation than they already have . 

You will to set up an account somewhere else with a bank that is not associated with Monzo. 

sam19901

elsien said:

They may just have decided that they don’t want your money anymore if you’ve had a number of claims, even if they are legitimate ones. 

It’s likely to be a business decision on their part. There’s not going to be a marker unless they decide something dodgy is going on. 

From previous threads with people having bank accounts closed, if the bank is making a commercial decision, there is absolutely nothing you can do about it. They won’t give you any more explanation than they already have . 

You will to set up an account somewhere else with a bank that is not associated with Monzo. 

Thanks for your speedy response - appreciate that. So, CIFAS markers are added only in case of fraud? From what I understand, fraud means that the account closure happens immediately?

The good thing is that I can still use my account and my overdraft, plus manage my loan. Nothing has changed, but the notice of the account closure in 60 days comes up in my account. Monzo has never been my main account anyway.

eskbanker

sam19901 said:

I am uncertain whether this course of action might lead to the placement of a CIFAS marker on my record. Given these uncertainties, I am seeking insights into the options available to me at this juncture.

1. Check with CIFAS to establish if Monzo have placed a marker.
2. If they have, challenge with Monzo if appropriate to do so.
3. If they haven't, open an account elsewhere.

sam19901

eskbanker said:

sam19901 said:

I am uncertain whether this course of action might lead to the placement of a CIFAS marker on my record. Given these uncertainties, I am seeking insights into the options available to me at this juncture.

1. Check with CIFAS to establish if Monzo have placed a marker.
2. If they have, challenge with Monzo if appropriate to do so.
3. If they haven't, open an account elsewhere.

What is the possibility of a CIFAS marker though? That is what I am trying to understand as I am panicking. I already have two other bank accounts.

eskbanker

sam19901 said:

eskbanker said:

sam19901 said:

I am uncertain whether this course of action might lead to the placement of a CIFAS marker on my record. Given these uncertainties, I am seeking insights into the options available to me at this juncture.

1. Check with CIFAS to establish if Monzo have placed a marker.
2. If they have, challenge with Monzo if appropriate to do so.
3. If they haven't, open an account elsewhere.

What is the possibility of a CIFAS marker though? That is what I am trying to understand as I am panicking. I already have two other bank accounts.

I don't believe it's likely - as you say, if there was fraud then the account would be closed immediately, but, in the context of you seeking options available to you, I was simply meaning that if you're concerned about the possibility then you can just check, by submitting a SAR.

friolento

sam19901 said:

The good thing is that I can still use my account and my overdraft, plus manage my loan. Nothing has changed, but the notice of the account closure in 60 days comes up in my account. Monzo has never been my main account anyway.

Do you have a loan and/or an overdraft with Monzo? Have they asked you to settle either/both of them within 60 days? 

sam19901

lcooper said:

sam19901 said:

The good thing is that I can still use my account and my overdraft, plus manage my loan. Nothing has changed, but the notice of the account closure in 60 days comes up in my account. Monzo has never been my main account anyway.

Do you have a loan and/or an overdraft with Monzo? Have they asked you to settle either/both of them within 60 days? 

I do have a loan and an unused overdraft, but no mention of settling them within 60 days. Just to begin the process of CASS.

la531983

The simple answer is they didn't like your string of chargebacks, for whatever reason. 

friolento

sam19901 said:

lcooper said:

sam19901 said:

The good thing is that I can still use my account and my overdraft, plus manage my loan. Nothing has changed, but the notice of the account closure in 60 days comes up in my account. Monzo has never been my main account anyway.

Do you have a loan and/or an overdraft with Monzo? Have they asked you to settle either/both of them within 60 days? 

I do have a loan and an unused overdraft, but no mention of settling them within 60 days. Just to begin the process of CASS.

The unused overdraft shouldn't be a concern, as long as it remains unused. You should clarify what the position on the loan is - when is it due to end, how much is outstanding, what happens if it's not settled in the next 60 days / before your current account gets closed? Loans cannot be CASSed.

sam19901

lcooper said:

sam19901 said:

lcooper said:

sam19901 said:

The good thing is that I can still use my account and my overdraft, plus manage my loan. Nothing has changed, but the notice of the account closure in 60 days comes up in my account. Monzo has never been my main account anyway.

Do you have a loan and/or an overdraft with Monzo? Have they asked you to settle either/both of them within 60 days? 

I do have a loan and an unused overdraft, but no mention of settling them within 60 days. Just to begin the process of CASS.

The unused overdraft shouldn't be a concern, as long as it remains unused. You should clarify what the position on the loan is - when is it due to end, how much is outstanding, what happens if it's not settled in the next 60 days / before your current account gets closed? Loans cannot be CASSed.

Oh wow. I had no idea this was going to be a problem. So it's for eight years and the outstanding amount is quite significant, which of course I won't be able to pay over two months. Do you think an arrangement would be possible?