De-Banking update – why new rules may still fall short

Throughout 2024, 2025 and 2026 we wrote extensively about de-banking,  including “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” and more recently “De-banking continues to rise in the UK”.

Unfortunately, throughout 2025 and 2026 we continued to be approached by individuals who feel that they have been unfairly “de-banked”.  This is an incredibly frustrating situation to be in.

We have previously outlined steps that individuals who have been de-banked can take.  This includes making a formal complaint to the relevant bank, accompanied by a Data Subject Access Request (“DSAR”).

However, as we have previously detailed, there are new rules lined up and coming into force in 2026 to try and assist customers in de-banking situations:

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

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

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

Additionally, the new proposed rules will provide more transparency on the bank’s decision-making process by requiring the banks to, in the right circumstances, give more reasons for their decisions to de-bank a customer.

When will the new debanking rules come into effect?

The new rules will come into effect on 28 April 2026.

Are there any issues with the new rules?

Yes, in our view there remain a few issues:

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.

The new rules are expected to apply to contracts agreed on or after 28 April 2026, therefore they will not have retrospective effect.

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 circumstances 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 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 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 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”
• “De-banking and crypto – will the landscape be positively changed by the introduction of new rules for both?”
• “2025 – A year in de-banking”
• “De-banking continues to rise in the UK”

What can I do to try and challenge a wrong-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 completed in full compliance will all applicable laws and regulations.

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 explored Challenging a crypto-related CIFAS Marker: what you can do.

NAVIGATING FINANCIAL INSTITUTION-RELATED CHALLENGES

Adverse information on compliance databases

We also being increasingly 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 and difficulties in opening a bank account.

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

HOW GHERSON CAN ASSIST

Gherson’s Regulatory, White-collar and Investigations team are highly experienced in providing guidance 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, 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