UK Government to Convene Emergency Meeting with Banks amidst Soaring Account Closure Rates

The Finance Ministry of the United Kingdom (UK) has taken a significant step to address growing concerns over major banks closing customer accounts based on their political views. Financial Services Minister Andrew Griffith will request a meeting with prominent lenders, including NatWest, Lloyds, HSBC, and Barclays, to discuss the issue and urge them to take measures to prevent customers from losing access to services due to their political beliefs.

A draft of the letter, scheduled to be sent on Monday, indicated that the government is committed to protecting customers’ right to lawful freedom of expression. The letter also outlined recent reforms that mandate banks to provide more notice and explanations for account closures. Although these reforms are yet to be enforced, the ministry’s letter implored banks to act immediately to safeguard their customers’ rights.

“The Government strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it,” the draft letter stated.

The move came after a public dispute between former Brexit party leader Nigel Farage and NatWest. Farage revealed that his accounts at private bank Coutts were being closed, partially due to his political views. The incident sparked widespread criticism, including from Prime Minister Rishi Sunak, who tweeted last week, “No one should be barred from using basic services for their political views.”

To address the concerning situation of “de-banking” individuals for their lawful views, Minister Griffith is organizing a roundtable discussion with lenders at the earliest opportunity. The aim is to ensure that customers can maintain access to their bank accounts without fear of discrimination based on their political beliefs.

NatWest’s CEO, Alison Rose, already issued an apology to Nigel Farage in response to the controversy surrounding the closure of his accounts. However, the incident has led to calls for a broader examination of the practices of other financial services firms.

The banking lobby group UK Finance clarified that while lenders may close accounts for various reasons, they are required to treat customers fairly. Nevertheless, lawyers have expressed concerns that the new rules designed to protect customers’ rights may put banks in a difficult position when financial crimes are suspected, as the “tipping off” of potential suspects is prohibited under UK regulations.

In light of recent developments, the finance ministry is reportedly scrutinizing three other financial services firms – Metro Bank, Yorkshire Building Society (YBS), and American Express – following claims that they also closed accounts based on customers’ political views.

Both Metro Bank and Yorkshire Building Society have denied such practices, with Metro Bank stating, “It is not our policy to close an account due to the political or personal beliefs of an individual or organization.”

As the issue gains momentum, the Treasury and American Express have yet to respond to requests for comment on the matter.

The upcoming meeting between the finance ministry and major lenders signals the government’s commitment to ensuring that customers’ right to express their political views is protected and that account closures based on political beliefs are appropriately addressed.