Laura WilesHM Treasury has outlined new rules which will require banks and other payment service providers (PSPs) to give customers 90 days’ notice before closing an account or terminating a payment service. Relevant firms will also need to provide a clear explanation of their decision in writing to the customer.
Currently, banks and PSPs only have to provide two months’ notice to customers. The updated rules are expected to come into force for new contracts from 28 April 2026.
The changes are aimed at preventing banks closing accounts without a clear explanation, and giving customers the time and information they require to challenge decisions. HM Treasury notes that the nine largest UK current account providers are already required to offer basic personal bank accounts to people who legally reside in the UK but do not have, or are not eligible for, an account. It hopes that the new rules will help maintain access to basic banking services for vulnerable customers.