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UK Banks Closing Over 1,000 Accounts Daily

According to recently released data, UK banks close more than 1,000 accounts per workday. This has intensified the debate about alleged “debanking”. Nigel Farage, a former leader of the UK Independence Party (UKIP), has demanded a royal commission’s probe. He referred to this as a scandal.

Now, Farage has claimed that he is leading a website to advocate for those whose accounts have been closed by banks. A Freedom of facts (FoI) request issued to the UK’s Financial Conduct Authority disclosed the fresh facts about “debanking.” On Sunday, July 30, Daily Mail was the first to report on this. According to the Freedom of Information Act request, banks closed more than 45,000 accounts in 2016–17.

According to reports, more accounts have apparently been closed each year. In 2021–2022, the number increased to 343,000 accounts. This meant that more than 1,000 bank accounts were closed every working day.

Overview of UK Banks

According to reports in the UK media, individuals or organizations often receive minimal or no explanation when their accounts are closed by banks. In such instances, the lack of clarity leaves customers in the dark about the specific reasons for the account closure. Banks may cite concerns over financial crimes as the basis for such actions, but the lack of detailed explanations can lead to frustration and uncertainty for those affected.

This issue has raised questions about the transparency and communication between banks and their customers, as well as the need for clearer guidelines regarding account closure procedures. As this practice persists, customers and businesses alike are seeking more transparency and accountability to ensure a fair and informed approach to handling such sensitive matters.

UK Banks Closing Over 1,000 Accounts Daily

Only a few or no details

According to UK media reports, when accounts are canceled, the people or groups involved receive little to no justification. Accounts are occasionally closed, according to banks, because of worries about financial crimes.

With the aid of a subject access request, Farage learned that Coutts, a NatWest subsidiary, had closed his account in part due to his political beliefs. Farage’s case has gained attention already. Following the uproar, the NatWest Group CEO was forced to resign.

Peter Flavel, the chief executive of Coutts, was also fired. Additionally, Farage has urged that Sir Howard Davies, chair of the NatWest Group, step down. On Sunday, Farage spoke with the media and called for the establishment of a royal commission to conduct a probe, “provided it happened quickly.”

“Small businesses and people from all over the country have simply flooded my inbox. People are in utter panic and fear, lives are being destroyed, and thousands of businesses are closing. These are individuals who have committed no wrongdoing at all, Farage told GB News. There, he serves as president.

Closing Over 1,000 Accounts

Nearly 90,000 people were reportedly classed as “politically exposed persons,” according to The Guardian. According to reports, as a result, banks have denied loans to several politicians or members of their families.

Gina Miller, a pro-Remain activist, has urged the FCA and the government to make sure that new parties and MPs have access to banking services. She made this demand after receiving a recent notification from digital bank Monzo that the account for her True and Fair party will expire in September. The same issues have reportedly been reported by pro-Brexit organizations.

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