De-banking continues to rise in the UK

Nearly 500,000 bank accounts were closed in 2025. We explain, why de-banking is on the rise, what new rules are being rolled out, and how to challenge unfair account closures.

Throughout 2024 and 2025, we wrote extensively about de-banking,  including “What are the proposed new laws aimed at preventing de-banking?” and “Why the proposed new laws to try and prevent de-banking do not go far enough”.

Unfortunately, throughout 2025, we continued receiving requests for assistance from individuals who believed that they had been unfairly de-banked.

We have previously outlined steps to help those who have found themselves in this incredibly frustrating situation. They include making a formal complaint to the relevant bank accompanied by a Data Subject Access Request (“DSAR”).

In this article, we will examine the results of a Freedom of Information Request by The Telegraph, which reveal that 453,230 bank accounts were shut down in 2025. 

What are the results of the Freedom of Information Request?

It has been reported that, according to the Freedom of Information request by The Telegraph, the number of bank accounts closed in 2025 (453,230) is around ten times higher than the number of the same in 2016-2017 (45,091). There has also been an increase from the 2023-2024 tax year, when the number of closed bank accounts was 408,000.

The Telegraph has also found that, in the majority of cases, banks and building societies relied on “financial crime reasons” as the main ground for closing accounts.

As we have previously detailed, new rules have been developed to assist customers who have lost access to banking services.

What are the new rules announced by the Labour Government aimed at preventing potential de-banking situations?

In our article from May 2025, we examined the new rules proposed by the Labour Government.

Broadly, we noted that the proposed new rules would extend the notice period a bank must give to a customer before closing their account (i.e. to de-bank a customer) from the current two months to 90 days.

In addition, the proposed rules would require banks, in appropriate circumstances, to provide greater transparency by giving clearer reasons for their decision to de-bank a customer.

Ultimately, the changes remained similar to those we highlighted in our March 2024 article on this topic:

What are the proposed new laws aimed at preventing de-banking?

When will the new de-banking rules come into effect?

In June 2025, we examined the anticipated implementation timeline for the new rules and confirmed that they are expected to come into effect from April 2026, subject to Parliamentary approval.

However, as we have previously explained, although the new rules will go further in addressing some of the iniquities in certain de-banking decisions, the whole approach to providing adequate access to a bank account and banking facilities needs to be radically reconsidered, making it akin to a fundamental right rather than something that can be offered (and taken away) at the whim of the banks.

What can I do to challenge a wrongful decision to close my personal and/or business bank account(s)?

In the meantime, we receive a growing number of requests for assistance from de-banked  individuals who are adamant that they have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other applicable rules and regulations.

We have previously written about how bank account closures are not an issue that only political figures in the UK may face – in reality, they affect many thousands of lawful individual and business customers every year. These cases have exposed the difficult regulatory terrain many financial institutions and their individual and business customers must navigate to gain and maintain access to basic banking services.

To assist those whose accounts have been closed, Gherson’s Financial crime, Investigations and Regulatory team have previously published the following articles:

“Why has my bank account been closed?”

“Why has my business bank account been closed?”

“140,000 SMEs “de-banked” last year – why could I have been de-banked?”

“What are the proposed new laws aimed at preventing de-banking?”

“Why the proposed new laws to try and prevent de-banking do not go far enough”.

“Am I entitled to a basic bank account in the UK?”

“How to challenge crypto-related bank account closures”

“De-banking and crypto – will the landscape be positively changed by the introduction of new rules for both?”

“2025 – A year in de-banking”

What can I do to challenge a wrongfully imposed CIFAS marker?

We are also being increasingly approached by individuals who believe that a financial institution has wrongfully imposed a CIFAS marker in their name.

If you have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other applicable rules and regulations, then you should have a good basis to challenge the bank’s decision to implement any CIFAS markers.

A strong challenge will often involve demonstrating – through evidence – that you have not breached the bank’s Terms and Conditions or any rules, and that all transactions were conducted in full compliance with all applicable laws and regulations.

In previous articles, we examined what a CIFAS marker is, and how to try and get it removed, as well as what to do if a CIFAS marker has been wrongfully imposed.

We have also recently explored the ways of challenging a crypto-related CIFAS Marker.

NAVIGATING FINANCIAL-INSTITUTION-RELATED CHALLENGES

Adverse information on compliance databases

We regularly receive enquiries from individuals who believe that incorrect and/or inaccurate data held about them on compliance databases is having an adverse effect on their relationship with financial institutions, leading to issues such as bank account closures and difficulties in opening a bank account.

We have also written a series of articles on a general overview of the main functions of compliance databases such as World-Check, and explained how to correct information about yourself on such databases.

HOW GHERSON CAN ASSIST

Gherson’s Regulatory, White-Collar Crime and Investigations team are highly experienced in assisting clients whose bank accounts have been frozen or closed. This includes submitting a request under data protection legislation, otherwise known as a Data Subject Access Request, to ascertain what information banks and other financial institutions may be holding about our client, and to understand their decision making; and then analysing their response and assisting with any appropriate challenge.

If you would like to speak to us in respect of any of the issues raised in this article or about your specific circumstances, do not hesitate to contact us for advice, send us an e-mail, or alternatively, follow us on X, Facebook, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice.  Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position.  Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog.  For formal advice on the current law please do not hesitate to contact Gherson.  Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2026