Should banks monitor your spending for potential debt?

Last Updated on 25 February 2020 by Dan

An interesting article published yesterday on the Financial Times highlighted an increasing push that people believe banks should actively do more to monitor transactions when accounts begin to overspend and send alerts on where to get help.

There was also a prominent feature on the BBC’s website about a lady who suffered from bipolar disorder and stated that she wished her bank had asked about her spending before she ran up too much debt.

The Financial Wilderness sees some good and bad in this – the fact that so much debt exists in our economy highlights that people knowingly or unknowingly wander into the trap of building up debts with their bank. I know I feel reassured, if occasionally slightly inconvenienced by the times that my bank has halted a transaction to check for potential fraud.

However I certainly wouldn’t feel comfortable with a bank seeing who I spend with or making judgements about the appropriateness of said spending as some have called for. One card provider or bank may also not have a full and complete view of your financial situation, meaning intervention is annoying rather than providing assistance.

TFW is curious where people sit on this – are you one of those who would like to see active intervention? Would you see it as intrusive regardless? Or does the idea appeal but strictly as an optional service? Vote in our poll!

As ever you can leave a more in depth comment below.

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