UK Banks Required to Give 90 Days' Notice for Closures

Major UK banks, including Lloyds, HSBC, NatWest, and Nationwide, must now provide customers with at least 90 days' notice before closing accounts or terminating payment services, under new regulations that took effect on April 28. The rules, which apply to contracts signed on or after that date and include basic personal bank accounts, extend the previous two-month notice period and require written explanations for closures, allowing individuals and businesses greater time to challenge decisions.

The changes stem from efforts to address debanking, the practice where banks close or refuse accounts, often due to regulatory requirements, risk management, or concerns over activities like money laundering and terrorism financing. Previously, closures could occur with limited transparency, leaving customers vulnerable to sudden loss of essential services. The government introduced the measures to enhance consumer protections, ensuring fairer treatment and clearer communication. Banks retain the ability to act swiftly in cases involving financial crime compliance, but they must now prohibit discrimination based on customers' political views or beliefs when offering payment accounts.