Major high street banks will now be required to give customers 90 days’ notice before closing accounts. This is a significant increase from the previous two months’ notice period.
The new de-banking regulations apply to contracts agreed from April 28, 2026. Banks must also provide a written reason for account closures.
Customers can challenge these closure decisions through the Financial Ombudsman Service. According to Emma Reynolds, “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.”
These changes aim to enhance customer protection and prevent sudden account closures. Small businesses are expected to benefit significantly from these new regulations.
The nine largest personal current account providers must also offer basic bank accounts to UK residents without existing accounts. This move aligns with Labour’s initiatives announced in April 2025.
De-banking refers to banks refusing to open or closing accounts for specific customers. The issue gained national attention in 2023 after Coutts closed Nigel Farage’s accounts.
The updated regulations will provide customers with additional time to dispute decisions they find objectionable—allowing them to seek alternative banking options if needed.
As of midday, details about how these changes will be implemented remain unclear. Observers are closely monitoring how banks will adapt their practices.
The next steps for banks involve adjusting their policies and informing customers about these upcoming changes.
