Can my bank close my account because of my views?

The fallout from Nigel Farage having his slope relationship closed has raised questions implicit whether banks tin terminate accounts owed to a person's governmental beliefs.

The erstwhile UKIP person has said an interior papers from backstage slope Coutts indicated his governmental views were portion of the determination for the relationship being closed.

Dame Alison Rose has resigned arsenic main enforcement of NatWest which owns Coutts, aft she admitted discussing Mr Farage's relationship with a BBC writer was a "serious mistake of judgement".

In short, it isn't wide either way.

Mr Farage claims helium is "far from alone" successful this matter, claiming that "tens of thousands of radical person had their accounts closed".

However Sir Philip Augur, a erstwhile subordinate of the Future of Banking Commission, which was acceptable up to marque banks much accountable to customers aft the 2008 fiscal crisis, said helium did not deliberation cases similar Mr Farage's were widespread.

"No uncertainty determination volition beryllium tons of complaints, nary uncertainty each azygous slope volition beryllium scrutinising their processes truly cautiously from present on," Sir Philip told the BBC's Today Programme. "But I would beryllium truly amazed if this is simply a monolithic manufacture wide issue."

The Financial Ombudsman Service told the BBC that it received 1,389 complaints astir closures of existent accounts successful 2022 and 2023 but said it could not supply accusation connected the reasons down them.

The instrumentality states that each idiosyncratic successful the UK has a ineligible close to clasp a basal slope relationship that gives them the quality to person and marque payments.

Legislation says a recognition instauration (legal jargon for a bank) "must not discriminate against consumers legally nonmigratory successful the United Kingdom by crushed of their nationality oregon spot of residence oregon by crushed of sex, race, colour, taste oregon societal origin, familial features, language, religion oregon belief, governmental oregon immoderate different opinion".

Nikhil Rathi, main enforcement of the Financial Conduct Authority, told MPs past week that authorities astir outgo accounts meant banks cannot "discriminate connected the ground of governmental views".

Angela Knight, erstwhile main enforcement of the commercialized assemblage British Banking Association, said it didn't substance what benignant of slope relationship idiosyncratic had - from precise basal oregon 1 with "bells and whistles" specified arsenic overdrafts, savings accounts and lasting orders - rules preventing banks discriminating are the same.

But she said banks tin garbage customers erstwhile fraud, for example, is suspected oregon erstwhile a person's behaviour wrong a slope oregon towards slope unit amounts to a nationalist bid offence oregon harassment.

One perchance complicating origin are figures who are classed arsenic a politically exposed person, oregon PEP.

These are radical who clasp a salient presumption oregon power who whitethorn beryllium much susceptible to being progressive successful bribery oregon corruption.

Banks are required to bash other owed diligence connected PEPs.

The authorities has said immoderate banks mightiness beryllium "failing to onslaught the close balance" successful their attack to providing services to PEPs.

It has said accounts should beryllium not closed conscionable due to the fact that of someone's presumption arsenic a PEP.

As the instrumentality states, a slope should not adjacent an relationship due to the fact that of a "belief, political, oregon an different opinion".

However, if a idiosyncratic drops nether the wealthiness threshold that immoderate banks person it could punctual the lender to behaviour a wider reappraisal of the customer's profile, including reputational and ineligible risk.

Gary Greenwood, a banking expert astatine Shore Capital, said the full banking assemblage mightiness person to alteration the mode it approaches relationship closures.

Lenders volition request to "demonstrate that they person gone done the due processes", helium said.

But Mr Greenwood said banks volition inactive request to see ineligible and regulatory requirements specified arsenic fiscal crime, arsenic good arsenic whether their reputations volition beryllium tarnished by having immoderate customers connected their books.

The authorities met with slope bosses connected Wednesday who committed to authorities reforms connected the closure of lawsuit accounts.

The reforms see a request that banks springiness customers a termination announcement play of 90 days. This would giving customers much clip to situation a determination done the Financial Ombudsman Service oregon to find a replacement bank.

Banks volition besides beryllium required to spell retired wherefore they are terminating a slope account, but determination volition beryllium constricted exceptions to specified requirements, for illustration erstwhile investigations into transgression enactment are ongoing.