Government to Clamp Down on ‘Unfair’ Bank Account Closures With New Rules

The City of London financial district is seen in London, Britain, on Oct. 22, 2021. Hannah McKay/Reuters

Banks will be forced to explain and delay any decision to close an account under freedom of expression protection rules, according to the government.

On Thursday, the Treasury said that it has stepped in to “address fears that banks” are terminating accounts because they disagree with someone’s political beliefs.

The announcement comes after Natwest’s chief executive, owner of the prestigious bank Coutts, apologised to Nigel Farage and has promised a full review of the bank’s processes after a dossier said that his views “were at odds with our position as an inclusive organisation.”

In July, Mr. Farage claimed the bank he has been with for over 40 years has closed his account with “no explanation.”

Documents published in the Daily Mail contained a 40-page memo by the bank’s Wealth Reputational Risk Committee.

The document mentioned Mr. Farage had reshared a tweet by the comedian Ricky Gervais mocking transgenderism, which the document called “a transphobic comedy sketch” as well as his friendship with tennis player Novak Djokovic, who is opposed to COVID-19 vaccinations. It also claimed Mr. Farage is “xenophobic and racist.”

British Brexit Party leader Nigel Farage speaks during a visit to Dover harbour, in Dover, England on Aug. 12, 2020. Matthew Childs/Reuters

New Rules

The new changes will increase the notice period to 90 days–giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement bank,

Banks will also be required to spell out why they are terminating a bank account.

The Treasury said that changes can only be made due to new powers in the Financial Services and Markets Act 2023, which “give Britain control of its financial rulebook following Brexit.”

Economic secretary to the Treasury, Andrew Griffith, said that “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.”

Account Closures

There have been high-profile cases of people claiming their bank accounts were closed for ideological reasons.

Keith Jordan, the founder of Our Duty, previously told The Epoch Times that a Metro Bank manager told him by phone that it could not open a business account because of what the group believes is in conflict with the bank’s culture.

Our Duty, a group of more than 2,000 parents, rejects gender ideology and says that a “great many children who consider themselves transgender would, if they avoid transition, grow out of their feelings of dysphoria, anxiety and depression.

Metro Bank denied that decisions around accounts are based on personal or political beliefs.

In July, the Rev. Richard Fothergill claimed that his bank account was closed after he wrote to the Yorkshire Building Society in June to complain about their public messaging during Pride month, with a “polite rebuttal” of transgenderism.

Mr. Fothergill told The Epoch Times that he has since contacted the bank to ask for the account to be reopened, as well as an apology for it being “so intolerant,” but they have since “ignored him and they haven’t replied.”

Mr. Fothergill said that the new bank rule was “very good news.”

“It’s a good way to go. Banks need to be challenged in the right way to not be intolerant,” he said.

Sinister New Form Of Cancel Culture

Toby Young from Free Speech Union told The Epoch Times by email on Thursday that after his organisation was de-banked by PayPal last year, they started talking to City and Treasury Minister Andrew Griffith about what “could be done to stop this happening to other people.”

“He invited us to submit evidence to the Treasury about how widespread this form of censorship is. We duly did that, citing numerous cases, and the upshot is that the Payment Services Regulations are now being tightened to stop banks and payment processors from closing people’s accounts for exercising their right to lawful free speech,” said Mr. Young.

He added that the government “deserves a lot of credit for acting quickly to stamp out this sinister new form of cancel culture.”

“We kicked up a stink about it, the government listened and I’m happy to say it has done something about it,” said Mr. Young.

A spokesperson for Yorkshire Building Society disputed the claims and told The Epoch Times, “While we do not comment on individual cases, we never close savings accounts based on different opinions, beliefs or feedback provided by our customers.”