Charities: Banking Services Debate
Full Debate: Read Full DebateDepartment: Ministry of Housing, Communities and Local Government
Baroness Barker
Main Page: Baroness Barker (Liberal Democrat - Life peer)Department Debates - View all Baroness Barker's debates with the Ministry of Housing, Communities and Local Government
(6 days, 8 hours ago)
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Lord Lemos (Lab)
My Treasury officials will kill me for this answer, but I must say that I recognise the picture the noble and gallant Lord has painted. When I came to read the pack for this Question, I had a decided sense of déjà vu. I will pass that question on to my noble friend Lord Pitt-Watson and he will get straight back to the noble and gallant Lord.
Baroness Barker (LD)
My Lords, charities are subject to accountability to a range of regulatory bodies—the Charity Commission, the Fundraising Regulator and HMRC. In view of that, does the Minister agree that it is wrong that banks can unilaterally withdraw banking services and that there is no appeal?
Lord Lemos (Lab)
As the noble Baroness knows, debanking and access to banking services is an issue way beyond charities and it is really important. The Government recognise the importance of that, and that is why they have introduced new rules to require banks to give customers 90 days’ notice before closing accounts and to provide a clear explanation. The Government’s new rules will ensure more transparent and predictable access to banking, while still recognising that it is a commercial decision for a provider as to whom they provide services. But what I would say is that banks are big and rich, most charities are small and poor, and I am on the side of the little guy.