• Friday, June 21, 2024

Business

Hunt says UK will tighten rules to stop ‘debanking’

The practice became a political issue after former Brexit Party leader Nigel Farage said his account at private bank Coutts

Nigel Farage’s Coutts bank account was closed due to his political positions

By: Eastern Eye

CHANCELLOR Jeremy Hunt said on Monday (2) he would tighten banking rules to make sure customers could not have their accounts closed just because others disagree with their political views.

The practice, known as “debanking”, became a political issue after former Brexit Party leader Nigel Farage said his account at private bank Coutts, part of NatWest, had been closed due to his political positions.

An internal bank document unearthed by Farage later showed the decision was partly taken over his views, alongside commercial considerations.

“Nobody should have their bank account closed because somebody else decides they’re not politically correct,” Hunt told the Conservative Party’s annual conference in Manchester.

“We will tighten the law to stop people being debanked for the wrong political views.”

The notice period for terminating an account will rise from two months to 90 days, and banks will have to give customers a “clear and tailored explanations” for why an account has been closed, steps flagged in July.

The Treasury on Monday set out how these changes would be implemented.

“A public consultation will be launched shortly to consider how these changes are best delivered, before legislating next year, as part of the government’s aim to put an end to de[1]banking for freedom of speech reasons,” the Treasury said in a document. The government will publish draft secondary legislation by the end of 2023 and aim for parliamentary approval in 2024.

Regulators would also be given “the green light to take firm action if any bank is found to undermine or fails to protect the rights of their customers”, the ministry said.

Related Stories

Videos

Mrunal Thakur on Dhamaka, experience of working with Kartik Aaryan,…
Nushrratt Bharuccha on Chhorii, pressure of comparison with Lapachhapi, upcoming…
Abhimanyu Dassani on Meenakshi Sundareshwar, how his mom Bhagyashree reacted…