The UK government has proposed a law requiring banks to give customers more notice and an explanation before closing their accounts, in response to increasing complaints about “debanking”. The proposed law comes in the wake of a highly publicised dispute last summer involving Natwest and former Brexit Party leader Nigel Farage over the closure of his account at the private bank Coutts.
Farage alleged that his Coutts account closure was politically motivated, sparking a scandal that led to the resignation of both Coutts and Natwest’s chief executives. While a subsequent review found no evidence of discriminatory practices, it did highlight shortcomings in Natwest’s communication regarding the matter.
