Major high street banks will now have to provide customers with a full 90 days’ notice before closing any accounts. This significant increase from the previous two-month requirement reflects a growing concern over de-banking practices.
Starting April 28, 2026, Lloyds, HSBC, NatWest, and other major banks must adhere to these new regulations. Customers will not only receive more notice but will also be entitled to a written explanation for account closures. This is a crucial development in customer protection.
Emma Reynolds highlighted that “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.” This shift aims to prevent abrupt access loss to banking services.
The issue of de-banking gained national attention in 2023 after Coutts closed Nigel Farage’s accounts. Such high-profile cases prompted scrutiny into how banks handle account closures. Now, small businesses are expected to benefit from these regulations as well.
Additionally, the nine largest personal current account providers must offer basic bank accounts to UK residents without existing accounts. This is another step toward ensuring fair access to banking services.
As part of Labour’s initiatives announced in April 2025, these updated regulations reflect a broader commitment to strengthening protections against de-banking. The aim is clear: deliver economic security for working people.
Despite these advancements, questions linger about how effectively these rules will be enforced and whether they will truly change banking culture in the UK. Observers are keenly watching how banks adapt their practices in response.
Customers can also challenge unfair account closure decisions through the Financial Ombudsman Service—a vital resource that adds another layer of protection.
The regulatory landscape is evolving rapidly. The updated regulations will provide customers with additional time to dispute decisions they find objectionable and locate alternative banking should their account be terminated.