Metropolis minister to warn banks over ‘disproportionate’ account closures
C
ity minister Andrew Griffith has summoned financial institution chiefs for a gathering to debate how prospects could be protected against “being de-banked” after Coutts reduce ties with Nigel Farage.
Mr Griffith is anticipated to write down to the chief executives of 19 banks, constructing societies and digital challengers on Monday warning that rules round politically uncovered individuals are “being applied in a disproportionate manner by some financial institutions”.
He stated the Westminster Government would “take all action necessary” to crack down on accounts being closed in response to prospects’ political opinions.
It comes after former UK Independence Party (Ukip) chief Mr Farage acquired dossiers indicating that his checking account was shut by non-public financial institution Coutts, owned by NatWest Group, as a result of it discovered his public statements did “not align” with its values.
The Treasury final week introduced reforms designed to offer prospects higher protections towards having accounts closed, adjustments that appeared to have been accelerated in response to Mr Farage’s expertise.
Mr Griffith has instructed banks that, whereas the reforms have but to be enacted legally, the Government “expects” that “firms should seek to take action on this policy as soon as possible and make best endeavours to implement”.
New measures embrace making banks clarify why they’re shutting an account, which was not beforehand required.
The discover interval for a pressured account closure will probably be prolonged from 30 days to 90 days.
The Government stated the extension ought to give prospects extra time to problem a call by way of the Financial Ombudsman Service or discover a alternative financial institution.
The Government strongly helps this elementary proper afforded to all folks in British society and can take the motion mandatory to guard it
Mr Griffith’s letter, which has been seen by the PA news company, is to be despatched to NatWest, Barclays, Lloyds Banking Group, HSBC, Nationwide Building Society, Santander, Virgin Money and Co-operative Bank.
Other chief executives anticipated to obtain the invite embrace these at TSB, Metro, Allied Irish, Danske Bank and Bank of Ireland, whereas the heads of digital finance outfits at Monzo, Starling, Chase, PayPal, Revolut and Wise may also be known as to the Treasury.
Mr Griffith says within the letter: “You will be aware of recent publicity around allegations of client de-banking in recent weeks and months.
“This has raised significant concern in both Houses of Parliament, including throughout the passage of the Financial Services and Markets Act 2023, and in recent days.
“The Government is unequivocal that banks and other payment service providers – which occupy a privileged place in society – should not be terminating contracts of payment account facilities on grounds relating to users’ exercising of their right to lawful freedom of expression.
“The Government strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it.
“I am calling a roundtable at the earliest opportunity to hear your views on how you and your firms will ensure that customers can access payment accounts without fear of being de-banked for their lawful expression, and necessary actions to be taken to implement the reforms announced.”
Mr Farage, the previous Brexit Party chief and MEP turned broadcaster, obtained an apology from NatWest chief government Dame Alison Rose for “deeply inappropriate comments” about him in official papers.
Coutts, the Seventeenth-century financial institution that closed Mr Farage’s account earlier this 12 months, cited his retweet of a Ricky Gervais joke about trans girls and his friendship with tennis participant Novak Djokovic, who’s against Covid vaccinations, to flag considerations that he’s “xenophobic and racist”, in paperwork seen by MailOnline.
The closure of Mr Farage’s accounts sparked outrage amongst senior Tory MPs who piled stress on Coutts and its proprietor NatWest.
Prime Minister Rishi Sunak stated “no-one should be barred from using basic services for their political views”.