Monzo Bank Limited - Payment Dispute

[Intrepid]

It's time to add Monzo Bank Limited to the Bank and Finance Subforums.

 

I received the e-mail (attached below) from Monzo Bank Limited which included the FCA attachment I have compiled underneath their e-mail.

 

1. Does their e-mail constitute a "default notice" pursuant to the Consumer Credit Act 1974?

2. Are they required to issue a default notice prior to reporting the account as defaulted to credit reference agencies?

 

3. It is my undestanding that once an account is closed it should no longer be reported on, the account was closed with a balance of £0.00.
 

Monzo - Email 04.10.22 - Redacted.pdf

[dx100uk]

1. no a DN must be in the right format consummate to section 87 of the CCA and be served by snail mail letter .

 

2. if they are registering a defaulted date in the summary line of the account that ALL can see - yes, but not if simply registering a D in the calendar section which only the debtor and the Original creditor can see - though a D will affect your score.

 

3. no that is not true.

 

dx

 

 

[Intrepid]

Thank you DX.

Just to be clear the disputed sum has been taken from a closed current account, does this still fall under the scope of consumer credit?
 

 

1.Section 88 of the act makes it clear a default notice must be in the prescribed form but I cannot find any detail as to the prescribed form.

The Consumer Credit (Agreements) Regulations 1983 make reference to information that must be contained within a default notice under Schedule 2 of the same Act,  however Schedule 2 is now blank.

From my dealings with Monzo I expect they will be under the seemingly incorrect impression that this constitutes service of a default notice, which will be a point of contention going forward.


2. Presumably there is no way of knowing their intentions before hand and it will only be known upon obtaining a credit report after the date in their email?

[dx100uk]

they cant serve a DN via email, 

section 87 has the format so does every default notice already uploaded here.

 

and what 'sum' are you talking about?? a closed account is still covered by the CCA 

 

however i now notice this is a bank account not a card nor loan so other than i think section 5 , its not covered by the CCa anyway.

 

dx

 

 

 

[Intrepid]

Section 87 covers the need for default

The sum is in reference to a sum received by a foreign merchant which was disputed, immediately returned but then later paid to the merchant by Monzo after the account was closed.

It appears as if Monzo are acting as if they are providing credit, however no credit agreement was sought or agreed to, there was never an overdraft on the account.

This feels very parking company-esque where they are doing everything to make it appear as if they are issuing a default notice without actually doing so.

Edited October 9, 2022 by Intrepid