Major high street banks will now be required to give customers 90 days’ notice before closing accounts. This new regulation significantly increases the previous two-month notice period.
The changes apply to new contracts agreed from April 28, 2026. Banks must also provide a written explanation for account closures. Customers can challenge these decisions through the Financial Ombudsman Service.
These regulations aim to enhance customer protection and prevent abrupt account closures. Small businesses are expected to benefit from this additional security.
The nine largest personal current account providers must offer basic bank accounts to UK residents without existing accounts. This move addresses concerns about de-banking—a practice where banks terminate or refuse to open accounts for certain customers.
The issue of de-banking gained national attention in 2023 after Coutts closed Nigel Farage’s accounts. The closure sparked widespread debate on banking practices and customer rights.
Emma Reynolds, a proponent of the new rules, stated, “Under the new rules, customers will receive more notice of account closures and have more opportunity to challenge such decisions.” This reflects a shift towards greater accountability in banking.
Reynolds emphasized that delivering economic security for working people is central to Labour’s Plan for Change. Strengthening protections against de-banking will safeguard access to banking services for individuals and businesses alike.
The updated regulations are part of a broader initiative aimed at enhancing customer rights within the banking sector. They reflect growing concerns over how banks manage account closures.
As implementation approaches, stakeholders will closely monitor how effectively these regulations protect consumers. The financial landscape may shift as banks adapt to these new requirements.
