Treasury minister is reportedly to warn banks he will “take all action necessary” to crack down on accounts being closed in response to customers’ political views.
Andrew Griffith, economic secretary to the Treasury, is set, according to several reports, to send a letter to 19 bank chiefs on Monday inviting them for a meeting regarding changes the Government is making to better protect customers.
It comes after former UK Independence Party (Ukip) leader Nigel Farage discovered his bank account was shut down by private bank Coutts, owned by NatWest Group, because it found his public statements did “not align” with its values.
The Treasury announced last week that banks will have to explain why they are shutting down an account under the new rules.
Previously they have not had to provide a rationale for doing so.
I am calling a roundtable … to hear your views on how you and your firms will ensure customers can access payment accounts without fear of being de-banked
The notice period for a forced account closure will be extended from 30 days to 90 days.
The Government said the extension should give customers more time to challenge the decision through the Financial Ombudsman Service or find a replacement bank.
City minister Mr Griffith is reportedly preparing to tell bank and building society chief executives that the recent allegations of “client de-banking” have “raised significant concern in both Houses of Parliament”.
“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 Conservative minister is expected to tell bank leaders.
“The Government strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it.”
He is set to add: “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 former Brexit Party leader and MEP turned broadcaster, received an apology from NatWest chief executive Dame Alison Rose for the “deeply inappropriate comments” made about him in official papers.
Historic bank Coutts, which closed Mr Farage’s account earlier this year, cited his retweet of a Ricky Gervais joke about transwomen and his friendship with tennis player Novak Djokovic, who is opposed to Covid vaccinations, to flag concerns that he is “xenophobic and racist” in documents seen by MailOnline.
The closure of Mr Farage’s accounts sparked outrage among senior Tory MPs, who had piled pressure on Coutts and its owner NatWest.
Prime Minister Rishi Sunak had made plain his view that “no-one should be barred from using basic services for their political views”.