29 April 2024 , 09:13
488
0
NatWest has extended the amount of notice it gives customers before shutting their bank account, ahead of huge new “de-banking” rules that are due to come into force from this summer.
The high street bank is now giving customers 90 days’ notice before they shut their account, in line with new legislation. At the moment, under the Payment Service Regulations 2017, banks must provide a minimum notice period of 60 days.
Speaking to The Telegraph, NatWest chief executive Paul Thwaite said: "I'm pleased to say we've already implemented the extension of notice periods from 60 to 90 days ahead of the draft legislation being implemented. I was very keen as a bank that we implemented that as quickly as possible."
It comes after Brexiteer and former UKIP leader Nigel Farage said he was "de-banked" after his account was closed by Coutts, the private banking arm of NatWest. He said this was because the bank did not agree with his political views. NatWest boss Dame Alison Rose later resigned hours after speaking about Mr Farage's account to a BBC journalist.
Generally, banks can close your account without your permission - and there are many reasons why they could decide to do this - for example, if you've committed a crime, or you simply don't use the account any more. You could also face your account being shut down if you've lied to, or abused, members of its staff.
Britain faces the worst recession among G7 partners, economists predict
However, the Financial Ombudsman Service (FOS) states accounts should not be closed "because of unfair bias or unlawful discrimination". Under the Equality Act 2010, it is against the law discriminate against someone based on their race, sexual orientation, gender, religion and beliefs.
If your bank account has been closed, you should speak to your bank first to try and resolve the situation. According to the Financial Ombudsman Service (FOS) your bank normally needs to give you their final response within 15 days - although, in some circumstances they’ll have up to eight weeks.
If you're unsatisfied with their reply, you can complain to the FOS - if it is then ruled that your account was closed unfairly, you could then be due compensation for distress and inconvenience.