A confidential settlement has been reached over the de-banking dispute: what this means for future account closures and access to financial services.
Throughout 2023 and 2024, following several high-profile “de-banking” cases, we published various blogs tracking the developments in this area. This culminated in our blog: 2024: A year in de-banking:
The original “de-banked”
Back in August 2023, when we originally started tracking the developments, we wrote about the conclusion of the “headline-grabbing, high stakes banking saga that revolved around UK politician Nigel Farage”.
We noted how in this case, the bank initially refused to share details as to why they had terminated the relationship, but eventually provided very minimal information.
The end of the original saga (but not the end of de-banking)
In our most recent article on the topic, we discussed the reports that Mr Farage was exploring private criminal proceedings against Natwest Group over the de-banking situation.
We concluded that it would certainly be interesting to watch this scenario unfold.
It has now been reported that Mr Farage has agreed to settle his de-banking dispute with Natwest.
Although the terms of the settlement are confidential, a joint statement reveals that “Natwest Group and Nigel Farage MP are pleased to confirm that they have resolved and settled their dispute and the bank has apologised to Mr Farage”
NAVIGATING CHALLENGES RELATED TO FINANCIAL INSTITUTION
Bank Account closures or “de-banking”
We have previously written that 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 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”.
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 accounts being closed and difficulties in opening a bank account.
We have 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?
Could a CIFAS Marker be affecting my ability to obtain financial services?
We are often approached by individuals who have been adversely affected by a CIFAS marker and want advice on how to remove this.
In some scenarios, the CIFAS marker against the individual would have been added wrongly, and being in this unfair situation can have a hugely detrimental effect due to the wide-ranging, complex and adverse consequences for the individual affected.
In a previous blog we examined what a CIFAS marker is and how to try and get it removed.
In a subsequent blog, we examined the next steps after a bank and CIFAS have refused by complaint.
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, as well as their decision-making, and then analysing the 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 blog 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 2025