New rules to force banks to explain account closures

Ministers will make it harder for banks to close accounts after the dispute between ex-UKIP leader Nigel Farage and Coutts.

Banks will be forced to explain and delay any decision to close an account under the new rules, the Treasury said.

Customers will also be able to challenge account closures more easily, it added.

It comes after Mr Farage alleged Coutts had targeted him because of his political views.

However, the bank had said the account closure was a commercial decision.

Under the new rules, banks will have to give a notice period of 90 days before closing an account, giving account holders more time to appeal against the decision.

They will also have to spell out why they want to close an account, making it easier for customers to challenge closures.