- City Minister Takes Action to Protect Consumers from Being “De-Banked” for Political Beliefs
- Bank Executives Summoned to Discuss Reassurance Measures After Farage Incident
- Treasury Announces Reforms to Enhance Customer Protections in Response to Account Closure Controversy
Andrew Griffith has asked the heads of a variety of banks, building societies, and digital challengers to explain how they will reassure consumers that they will not be de-banked “for their lawful expression.”
City Minister Andrew Griffith has summoned bank executives to discuss how consumers can be protected from being “de-banked” after Coutts severed ties with Nigel Farage.
Mr. Griffith is anticipated to send a letter to the heads of 19 banks, building societies, and digital challengers. Telling them the government will “take all action necessary” to stop political account closures.
According to him, regulations regarding politically exposed persons (PEPs) are “applied disproportionately by certain financial institutions.”
Coutts sent the former UKIP and Brexit Party leader a 40-page report. Which is owned by the NatWest Group. Indicating that his bank account was closed due to his views not aligning with the company’s “values.”
Mr. Farage stated that the bank viewed him as “xenophobic and racist” as well as an ex-“fascist.”
Last Monday, the Treasury announced revisions to give clients more rights, time to appeal decisions, and alternative institutions.
New measures include requiring banks to justify account closures and increasing the notice period from 30 to 90 days.
Senior Conservative MPs were incensed by Mr. Farage’s experience, which accelerated the revisions.
Mr. Griffith informed banks such as NatWest, Lloyds Banking Group, Santander, and HSBC that the government “expects” that “firms should seek to take action on this policy immediately and make best efforts to implement” it.
The Treasury may also summon TSB, Metro, Allied Irish, Danske Bank, and Bank of Ireland CEOs. Also the heads of digital finance companies Monzo, Starling, Chase, PayPal, Revolut, and Wise.
Mr. Griffith writes in his letter, “I am convening a roundtable at the earliest opportunity to hear your perspectives on how you and your firms will ensure that customers can access payment accounts without fear of being de-banked for their lawful expression, as well as the steps required to implement the announced reforms.”
NatWest CEO Dame Alison Rose apologised to Mr Farage for “deeply inappropriate comments” made about him in official documents.
Coutts stated in a statement on 20 July that it does not “close customer accounts solely based on legally held political and personal views”
