Major high street banks will now be required to give customers 90 days’ notice before closing accounts—an increase from the previous two months. This change, effective April 28, 2026, aims to enhance customer protection amid growing concerns about de-banking.
The new regulations mandate that when an account is closed, banks must provide a written explanation. Emma Reynolds, a key advocate for these changes, emphasized that “under the new rules, customers will receive more notice of account closures” and have a better chance to challenge such decisions through the Financial Ombudsman Service.
Historically, de-banking has emerged as a pressing issue in the UK. The practice gained national attention in 2023 when Coutts closed Nigel Farage’s accounts—a move that sparked outrage and increased scrutiny on banking practices. This led to calls for more stringent regulations.
The updated rules apply not just to personal accounts but also aim to benefit small businesses that often find themselves vulnerable in sudden account closures. Banks must now ensure that customers have adequate time—90 days—to dispute decisions they find objectionable.
In addition, the nine largest personal current account providers in the UK are now obligated to offer basic bank accounts to residents without existing accounts. This is part of a broader initiative announced by Labour in April 2025 aimed at strengthening protections against de-banking.
While these changes seem promising for many, some observers remain cautious. Will these new protections truly make a difference? The effectiveness of these measures will likely depend on how well banks implement them and whether they genuinely adhere to the new guidelines.
Still, the financial landscape is shifting. Customers can expect more transparency moving forward—an essential step toward rebuilding trust between banks and their clients. As Reynolds stated, “Delivering economic security for working people is at the heart of our Plan for Change.” With these regulations, there’s hope for a more equitable banking system.
You may also like
