Millions of bank customers will soon get stronger protection against having their accounts suddenly closed.
The changes are designed to give people more time and clearer information if their bank decides to end the relationship.
From 28 April 2026, banks will have to give at least 90 days’ notice before closing a current account, up from the current 60 days.
They will also be required to explain in writing why the account is being shut.
The new rules aim to stop customers from unexpectedly losing access to their money, while giving them enough time to find a new account and manage their finances.
The legislation stems from a controversy that erupted nearly three years ago when Coutts terminated Nigel Farage's account.
Although the private bank initially cited commercial factors, subsequent revelations showed the Reform UK leader's political views had significantly influenced the decision.
The affair triggered the departure of NatWest chief executive Alison Rose and prompted governmental intervention to address what many considered an unfair system weighted against consumers.
The new rules aim to stop customers from unexpectedly losing access to their money
| GETTYThe Conservative Government initially drafted the proposals, but it has fallen to the current Labour administration to enact the protections into law.
The changes respond to widespread anger over cases where customers appeared to lose banking services based on their personal or political beliefs.
Freedom of Information data reveals the scale of the problem, with 453,230 accounts terminated during the most recent financial year.
This figure represents a dramatic surge compared to 2016/17, when just 45,091 closures were recorded, a tenfold increase over the period.
For the hundreds of thousands of customers affected annually, the incoming regulations provide crucial safeguards.
Those who believe their bank has acted unfairly will have the option to dispute the decision by lodging a complaint with the Financial Ombudsman Service.
This avenue offers affected individuals a formal mechanism to contest closures they consider unjustified.
Customers hoping to revisit previous disputes should note a significant caveat: the protections apply exclusively to accounts opened on or after 28 April 2026.
The legislation stems from a controversy that erupted nearly three years ago when Coutts terminated Nigel Farage's account
| X / NIGEL FARAGE
Financial institutions also retain certain powers under the new framework
| GETTYThose who have already experienced account terminations or hold existing accounts cannot invoke these specific regulations to address past grievances.
Financial institutions also retain certain powers under the new framework.
Where suspected money laundering, fraud, or other financial crimes are involved, banks may still freeze or close accounts immediately without providing the standard notice period.
These exceptions ensure lenders can continue meeting their legal obligations to prevent criminal activity while the broader consumer protections take effect.