Treasury scrutinising three more banks who ‘closed customer’s accounts due to their political views’ in wake of Nigel Farage’s Coutts closure

• Treasury is probing Metro Bank, Yorkshire Building Society & American Express 

Three more banks have come under Treasury scrutiny after customers complained their accounts had been closed due to their political beliefs, it has emerged.

Officials are investigating Metro Bank, Yorkshire Building Society and American Express following complaints from Nigel Farage, Reverend Richard Fothergill and Richard Tice.

Specifics surrounding the probe remain unclear, but Economic Secretary to the Treasury Andrew Griffith is expected to meet this week with executives from leading banks, building societies and payment providers, The Telegraph reported. 

Mr Griffith is understood to be concerned with how prominent politicians and other account holders who express political views are being treated by the institutions.

It comes as Mr Farage revealed that his account with prestigious bank Cloutts – owned by NatWest – had been closed because the bank thought his political views did ‘not align with our values’.

Economic Secretary to the Treasury Andrew Griffith (pictured last year) is expected to write to the chief executives of 19 banks, building societies and digital challengers today warning that regulations around politically exposed persons are ‘being applied in a disproportionate manner by some financial institutions’

It comes after Nigel Farage (pictured last month) acquired dossiers indicating that his bank account was shut by private bank Coutts, owned by NatWest Group, because it found his public statements did ‘not align’ with its values

Mr Griffith is expected to write to the chief executives of 19 banks, building societies and digital challengers today warning that regulations around politically exposed persons are ‘being applied in a disproportionate manner by some financial institutions’.

He said the Government would ‘take all action necessary’ to crack down on accounts being closed in response to customers’ political views.

It comes after former UK Independence Party (Ukip) leader Mr Farage acquired dossiers indicating that his bank account was shut by private bank Coutts, owned by NatWest Group, because it found his public statements did ‘not align’ with its values.

The letter comes as the Treasury is looking into allegations against three banks.

Metro Bank has been accused of closing accounts linked to the Reform UK party in 2021, the newspaper reported. Mr Farage also reportedly claimed that he had issues keeping the Brexit Party’s accounts open with Metro the year prior. 

A spokesperson for the bank said it was not policy to ‘close or refuse’ an account due to an individual or organisation’s  ‘political or personal beliefs’.

Rev Fothergill reportedly alleged that the Yorkshire Building Society closed his account after he issued a complaint about its Pride month messaging.

Similarly, Reform UK leader Mr Tice has claimed that American Express suspended his account this year when he failed to hand over requested documents, according to The Telegraph. It is not clear what documentation the firm was seeking.

Officials are investigating Metro Bank, Yorkshire Building Society and American Express following complaints from Nigel Farage, Reverend Richard Fothergill (left) and Reform UK leader Richard Tice (right)

Mr Griffith’s letter is to be sent to NatWest, Barclays, Lloyds Banking Group, HSBC, Nationwide Building Society, Santander, Virgin Money and Co-operative Bank.

Other chief executives expected to receive the invite include those at TSB, Metro, Allied Irish, Danske Bank and Bank of Ireland, while the heads of digital finance outfits at Monzo, Starling, Chase, PayPal, Revolut and Wise will also be called to the Treasury.

Mr Griffith says in the letter: ‘You will be aware of recent publicity around allegations of client de-banking in recent weeks and months.

‘This has raised significant concern in both Houses of Parliament, including throughout the passage of the Financial Services and Markets Act 2023, and in recent days.

‘The Government is unequivocal that banks and other payment service providers – which occupy a privileged place in society – should not be terminating contracts of payment account facilities on grounds relating to users’ exercising of their right to lawful freedom of expression.

‘The Government strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it.

‘I am calling a roundtable at the earliest opportunity to hear your views on how you and your firms will ensure that customers can access payment accounts without fear of being de-banked for their lawful expression, and necessary actions to be taken to implement the reforms announced.’

Metro Bank has been accused of closing accounts linked to the Reform UK party in 2021, the newspaper reported. Mr Farage also reportedly claimed that he had issues keeping the Brexit Party’s accounts open with Metro the year prior

The Treasury last week announced reforms designed to give customers greater protections against having accounts closed, changes that appeared to have been accelerated in response to Mr Farage’s experience.

Mr Griffith has told banks that, while the reforms have yet to be enacted legally, the Government ‘expects’ that ‘firms should seek to take action on this policy as soon as possible and make best endeavours to implement’.

New measures include making banks give a ‘clear and tailored’ reason for why they are shutting an account, which was not previously required.

The notice period for a forced account closure will be extended from 30 days to 90 days. 

The Government said the extension should give customers more time to challenge a decision through the Financial Ombudsman Service or find a replacement bank.

A Treasury spokesperson told the newspaper that ‘freedom of speech is a cornerstone of our democracy’ and ‘must be respected by all institutions’.

MailOnline has approached the Treasury, Metro Bank, Yorkshire Building Society and American Express for comment.

Mr Farage, the former Brexit Party leader and MEP turned broadcaster, received an apology from NatWest chief executive Dame Alison Rose (pictured last week) for ‘deeply inappropriate comments’ about him in official papers 

Mr Farage, the former Brexit Party leader and MEP turned broadcaster, received an apology from NatWest chief executive Dame Alison Rose for ‘deeply inappropriate comments’ about him in official papers.

Coutts, the 17th-century bank that closed Mr Farage’s account earlier this year, cited his retweet of a Ricky Gervais joke about trans women and his friendship with tennis player Novak Djokovic, who is opposed to Covid vaccinations, to flag concerns that he is ‘xenophobic and racist’, in documents seen by MailOnline.

The closure of Mr Farage’s accounts sparked outrage among senior Tory MPs who piled pressure on Coutts and its owner NatWest.

Prime Minister Rishi Sunak said ‘no-one should be barred from using basic services for their political views’.

Source: Read Full Article