De-banking latest: when will the new de-banking protection rules come into effect?

We have been chartering the progress of the new rules seeking to provide more protection to customers who may have been subjected to a wrongful de-banking decision.

As we have previously explained, the issue of “de-banking” has received growing public attention in the UK, particularly following high-profile cases, such as that of Nigel Farage.

Throughout 2023 and 2024, following several high-profile “de-banking” cases, we published various blogs chartering the developments in this area, and this culminated in our blog entitled “2024: a year in de-banking”:

2024: a year in de-banking

In this latest blog, we examine when the proposed new rules will come into force.

What are the proposed new rules?

Broadly-speaking, the proposed new rules will extend the notice period the banks have to give before closing a customer’s account (i.e. de-bank a customer) from two months to 90 days.

Additionally, the new rules will provide more transparency on the bank’s decision process by requiring them, in the right circumstances, to give more reasons for their de-banking decision.

Ultimately, the changes remain 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 do the new rules come into effect?

The new rules should come into effect from April 2026, subject to Parliamentary approval.

Why we still think the new rules will not go far enough

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.

NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES

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

In the meantime, we are increasingly being approached by individuals who have been “de-banked” in situations where they are adamant that they have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other legal and applicable rules and regulations.

We have previously written about how other issues individuals may face, including account closures, are not limited to political figures in the UK, and may affect many thousands of lawful individual and business customers every year.  These cases have exposed the difficult balance many financial institutions and their individual and business customers must strike 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 written blogs titled:

“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 to not go far enough”.

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

“How to challenge crypto-related bank account closures”

What can I do to try and challenge a wrongly imposed CIFAS marker

We are also being increasingly approached by individuals who feel that a financial institution has wrongly 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 legal 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 regulations, and that all transactions were at all times carried out in full compliance will all applicable laws.

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

We have also recently examined Challenging a crypto-related CIFAS Marker: what you can do.

NAVIGATING FINANCIAL INSTITUTION-RELATED CHALLENGES

Adverse information on compliance databases

We are often approached by individuals who feel that incorrect and/or inaccurate data about them stored in compliance databases is having an adverse effect on their relationship with financial institutions and are facing subsequent issues, such as bank account closures or difficulties in opening a bank account.

We have also written a series of blogs on the basic overview of the main functions of compliance databases like World-Check and how you can correct information about yourself on such databases?

Updated: 26.06.2025

HOW GHERSON CAN ASSIST

Gherson’s regulatory, white-collar and investigations team are highly experienced in providing assistance on what you can do if your bank freezes or closes your account.  This includes assisting you in 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 on you and their decision making, and then analysing the response and assisting with any appropriate challenge.

If you have any questions arising from this blog, please do not hesitate to contact us for further 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 2025