Government toughens guidelines for UK banks over account closures
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Okay banks shall be topic to stricter guidelines over closing prospects’ accounts below modifications designed to guard freedom of expression, the Treasury has introduced.
It comes after former Ukip chief Nigel Farage stated his checking account was unfairly shut down by non-public financial institution Coutts, owned by NatWest Group, as a result of it didn’t agree along with his political opinions.
Freedom of speech is a cornerstone of our democracy, and it should be revered by all establishments
Banks must clarify why they’re shutting down somebody’s account below the brand new guidelines. They beforehand haven’t had to offer a rationale for doing so.
The Government has additionally prolonged the discover interval for a pressured account closure from 30 days to 90 days, which it stated provides prospects extra time to problem the choice by the Financial Ombudsman Service or discover a alternative financial institution.
Andrew Griffith, the financial secretary to the Treasury, stated: “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.”