Millions of people and small business owners will be better protected against their bank account being closed.
- New rules will require banks to give customers 90 days’ notice before closing accounts and provide a clear explanation.
- Changes will prevent banks closing accounts without a clear reason, while giving people and businesses the time and information needed to challenge decisions.
Banks and other payment service providers will be required to give customers at least 90 days’ notice before closing their account or terminating a payment service – an increase from the two months currently required – under new rules expected to come into force for relevant new contracts from April 2026.
Banks will also need to provide a clear explanation to customers in writing, so people can challenge decisions, such as through the Financial Ombudsman Service.
The new rules will give customers more time to challenge decisions they disagree with and find a new bank if their account is closed.
This will support small businesses which have complained about their account being closed without reason at short notice – leaving them no time to complain or find a replacement bank.
For further information please select the following link: Millions of people and businesses protected against debanking - GOV.UK