Government toughens rules for UK banks over account closures
The new rules come after former Ukip leader Nigel Farage said his bank account was unfairly shut down by private bank Coutts.
UK banks will be subject to stricter rules over closing customers’ accounts under changes designed to protect freedom of expression, the Treasury has announced.
It comes after former Ukip leader Nigel Farage said his bank account was unfairly shut down by private bank Coutts, owned by NatWest Group, because it did not agree with his political views.
Banks will have to explain why they are shutting down someone’s account under the new rules. They previously have not had to provide a rationale for doing so.
The Government has also extended the notice period for a forced account closure from 30 days to 90 days, which it said gives customers more time to challenge the decision through the Financial Ombudsman Service or find a replacement bank.
Andrew Griffith, the economic secretary to the Treasury, said: “Freedom of speech is a cornerstone of our democracy, and it must be respected by all institutions.
“Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely.
“These changes will boost the rights of customers – providing real transparency, time to appeal and making it a much fairer playing field.”
