Ordinary people offered ‘no lifeline’ in debanking scandal, says lawyer

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. He said: “The FCA is reportedly going to take swift action when it comes to investigating why politicians’ bank accounts have been closed, but is offering no lifeline of help to the potentially thousands of ordinary innocent people who have been victims of debanking. “This feels like a case of one rule for the political elite, who have a direct line to FCA CEO Nikhil Rathi, and another rule for everyone else, who currently have nowhere to turn to.” Mr Asher, a senior regulatory consultant at law firm Setfords, has previously expressed concern that increasingly risk-averse banks are using artificial intelligence to close the accounts of people whose details appear on fraud risk databases but may have done nothing wrong. “Further, the UK Government, and specifically Chancellor of the Exchequer Jeremy Hunt, need to revisit the FCA’s remit and consider expanding it to include oversight of the activities of the fraud marker database operators who are behind the majority of these account closures.” Part of the code of conduct Mr Asher is calling for would require banks to give customers a “specific, contestable reason” for closing their account and provide a clear way of appealing against a closure. In a letter to the Chancellor in early August, FCA chief executive Nikhil Rathi said: “We support the Government’s plan to further increase the required notice period for closure of accounts from 60 days to 90 days and will work with the banks and building societies to ensure effective implementation and, once the amended legislation comes into force, take action where this is not happening.”