Banks face probe into account closures for political reasons

Banks face probe into ‘chilling’ account closures: Storm grows over accounts shut for political reasons following Nigel Farage row

• City minister Andrew Griffith has been asked to look into the allegations 
• Read: My daughter was blocked from opening bank account for absurd reasons 

Banks are facing a Treasury investigation into claims they are closing customers’ accounts because they do not like their views on controversial topics.

City minister Andrew Griffith has been asked to look into allegations that over-zealous lenders are blocking clients without good reason.

A Tory MP who previously ran the banking industry’s trade body warned that the practice would have a ‘chilling effect’ on free speech. It comes after leading Brexiteer Nigel Farage and an Anglican priest claimed their accounts were closed due to disagreements with their banks.

Conservative MP Anthony Browne, a former chief executive of the British Bankers’ Association, said people were increasingly having their accounts shut down for saying something the lender disagrees with. ‘Banks are entitled to decide who they offer services to, and there are very few protections for customers in this,’ he told BBC Radio 4’s World At One programme. ‘One cause for concern is the increasing number of cases of people having their accounts closed down because the payment provider doesn’t agree with what they say on a particular issue.

‘It’s a major concern – it will have a chilling effect on free speech and freedom of belief.’

City minister Andrew Griffith (pictured) has been asked to look into allegations that over-zealous lenders are blocking clients without good reason

The controversy flared up after Nigel Farage (pictured) revealed his long-standing account had been closed by his bank

READ MORE: DOMINIC LAWSON: It’s not just Nigel Farage. My own daughter was blocked from opening a bank account for absurd and perverse reasons

Tory former Cabinet minister David Davis voiced concerns over the impact of banking rules relating to ‘politically exposed persons’, saying Mr Farage was ‘only the latest of a number of people to have their lives wrecked’.

Mr Davis told the Commons: ‘Recently, Lords in the other place have tried to correct this policy with only partial success, I understand because of pushback from the Home Office and security services.’

Responding, security minister Tom Tugendhat said of Mr Farage’s situation: ‘This sort of closure on political grounds – if that is indeed what has happened, and after all, we only have the allegation of it at this point – should be completely unacceptable.’

He added that banking regulations were ‘not here to silence individuals who may hold views with which we may or may not agree’.

Former Ukip leader Mr Farage said last week that the group he has been banking with for 43 years – understood to be Coutts, the 327-year-old private institutions whose clients include members of the Royal Family – called him two months ago to confirm it was closing his accounts.

He branded the move as ‘serious political persecution’ for his campaigning, adding that British banks were ‘part of the big corporate structures who did not want Brexit to happen’. Two former Brexit Party MEPs, Christina Jordan and Henrik Overgaard-Nielsen, have voiced similar complaints.

The Rev Richard Fothergill said his account was shut down after he wrote to Yorkshire Building Society to complain about its public messages during Pride month. ‘I know cancel culture exists and this is my first first-hand experience of it. I wouldn’t want this bullying to happen to anyone else,’ he told The Times.

Mr Griffith told The Financial Times: ‘Banks and payment providers occupy a privileged place in society and it would be a concern if financial services were being denied to those exercising the right to lawful free speech’ 

READ MORE: ‘Free speech within the law is an important part of British liberty’: Rishi Sunak issues warning to banks over claims they are blacklisting customers with controversial views – as Chancellor Jeremy Hunt instructs ministers to investigate

Yorkshire Building Society said: ‘We only ever make the difficult decision to close a savings account if a customer is rude, abusive, violent or discriminates in any way.’

Journalist Stuart Campbell, who campaigns for Scottish independence, said his accounts at First Direct bank were closed because of his views on gender and sex, including declaring: ‘Women don’t have penises.’

Mr Griffith told The Financial Times: ‘Banks and payment providers occupy a privileged place in society and it would be a concern if financial services were being denied to those exercising the right to lawful free speech.’

Banks could be forced to provide more information about why they have decided to shut accounts, as well as serving a more rigid notice period.

Tory grandee Sir Charles Walker told GB News: ‘We should be concerned – banks have been closing the bank accounts of politicians now for about six or seven years with very little reason to do so. This is just a continuing trend.

‘The banks can do this with impunity because they literally can hide behind the tipping-off law and say ‘no, we’re not allowed to tell you why we’re closing your bank account because you could be under investigation’, which normally isn’t the case.’

The PM’s spokesman said: ‘The Treasury is running a call for evidence already to assess if the current framework strikes the right balance between the rights of the bank customer to express themselves freely and the right of the bank to manage commercial risk.’

Source: Read Full Article