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 significant change in banking regulations aims to enhance customer protection.
The new de-banking regulations, effective from April 28, 2026, mandate that banks provide a written reason for account closures. Customers will also have the right to challenge these decisions through the Financial Ombudsman Service.
Emma Reynolds, a key figure behind these reforms, stated, “Under the new rules, customers will receive more notice of account closures, be entitled to an explanation as to why their account has been closed and have more opportunity to challenge such decisions.” Such measures could reshape customer experiences significantly.
The issue of de-banking gained national attention in 2023 after Coutts closed Nigel Farage’s accounts. This incident highlighted the potential for abrupt account closures and raised questions about fairness in banking practices.
The updated regulations are part of Labour’s initiatives announced in April 2025. They reflect a growing concern regarding customers being denied access to essential banking services at short notice. Small businesses are expected to benefit particularly from these changes.
Notably, the nine largest personal current account providers must also offer basic bank accounts to UK residents without existing accounts. This move aims to ensure greater inclusivity within the financial system.
However, while these changes appear promising, uncertainties linger. For instance, how effectively will banks implement these new requirements? Will they genuinely provide all necessary information when closing an account?
As we approach the implementation date, observers remain cautious yet hopeful. The updated regulations will provide customers with additional time to dispute decisions they find objectionable and locate alternative banking should their account be terminated.
Ultimately, strengthening protections against de-banking is crucial for ensuring that individuals and businesses can maintain access to vital banking services. The landscape of UK banking is evolving—and soon it may look quite different than it does today.