City watchdog to probe the scale of the ‘de-banking’ scandal by demanding banks reveal how many accounts they have shut down and why
- Financial Conduct Authority will ask for how many complaints were received
- FCA’s chief executive said in recent years increased number of accounts closed
- READ MORE: Sex workers say they are being ‘de-banked’ with accounts frozen
The City watchdog is to demand that major banks reveal how many accounts they have shut down and the reasons why so it can gauge the scale of ‘unjustified’ de-banking.
The Financial Conduct Authority last night said it would ask the largest banks and building societies to divulge the number of accounts terminated or denied and how many complaints they received about this.
Their assessment – set to be completed by mid-September – is being carried out in parallel with a review of the treatment of Politically Exposed Persons (PEPs) such as politicians.
It came as SumUp, a major card reader provider, was criticised for revoking their financial services to a hunting group during their most prolific charity event.
In a letter to Chancellor Jeremy Hunt, the FCA’s chief executive Nikhil Rathi said: ‘We recognise the increased public concern about payment accounts being closed without justification.
In a letter to Chancellor Jeremy Hunt, the FCA’s chief executive Nikhil Rathi (pictured) said: ‘We recognise the increased public concern about payment accounts being closed without justification
‘In recent years, we have seen a significant increase in the number of bank accounts being closed.
‘It is less clear to which extent banks may be terminating accounts for reasons which may be unjustified and, in some cases, may contravene the law.
‘As the regulator, it is important we understand the scale of the issue and the drivers behind a reported increase in account terminations.’
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