Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of compliance by banks and payment providers with the Financial Conduct Authority's 2024 expectations concerning the denial and closure of payment accounts, particularly in relation to vulnerable consumers and lawful businesses.

Banking and payment services play a vital role in everyday life, and the Government recognises the serious impact that lack of access can have on businesses and individuals.

Decisions on the provision of these services are generally commercial matters for providers. However, the Government expects customers to be treated fairly. Legislation came into force earlier this year to improve protections where a provider terminates a customer’s account or service. Under these strengthened rules, banks and other payment service providers are required to give customers at least 90 days’ notice before closing their account or terminating a payment service, and provide a clear and specific explanation so the customer can understand why it is being terminated.

The nine largest UK providers of personal current accounts are also required by law to offer ‘basic bank accounts’ to individual customers legally resident in the UK who do not hold, or qualify for, another account with that provider.

The Financial Conduct Authority is responsible for supervising firms’ compliance with relevant requirements and expectations, including those concerning account denials and closures. Where applicable, customers who are dissatisfied with a provider’s decision may complain to the Financial Ombudsman Service.