Watchdog begins probe into number of customers ‘debanked’ by big banks
The Financial Conduct Authority sent a questionnaire on account closures to the UK’s biggest banks and building societies on Wednesday.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The UK’s financial watchdog is set to find out how many customers have been “debanked” by the UK’s largest banks as part of a probe into account closures and freedom of expression.
The move by the Financial Conduct Authority (FCA) follows the scandal sparked by politician Nigel Farage after he revealed that Coutts decided to shut down his bank account.
It resulted in the Government bringing in new rules to clamp down on unexplained bank closures, and culminated in the resignations of the bosses of Coutts and its owner, NatWest Group.
The FCA issued a questionnaire for the largest banks and building societies on Wednesday after saying it had launched a review into account terminations across the sector.
It will ask for information on the number of customers who have had their accounts terminated or suspended, or been denied banking services, and the reasons why.
Banks will also be asked about issues relating to freedom of expression, and how many complaints they have received from barred customers.
Chancellor Jeremy Hunt said last week that debanking poses a “threat” to free speech, adding: “You can agree or disagree with Nigel Farage but everyone wants to be able to express their opinions.”
Mr Farage had publicised internal Coutts documents which raised concerns the former Ukip leader was “xenophobic and racist” and that he held views which do not align with the bank.
NatWest Group has since launched an independent review into how it handled the Farage case, including Coutts’ policies in relation to customer account closures.
Banks have about two weeks to answer the FCA’s questionnaire. The watchdog is expected to publish its analysis in mid-September.