De-banking explained: the rules on notice and explanations

What is de-banking?

“De-banking” (or “debanking”) is the everyday word for a bank or payment provider closing your account, or refusing to open one. The regulations covered below do not use the term. The rules described below apply to the closing of an account as a matter of contract law and payments regulation, whatever the reason for it. If your account has been frozen rather than closed, see bank account frozen: why it happens and how long it lasts.

One reason accounts are closed is a fraud marker filed against a person. The Financial Ombudsman Service notes that people with a fraud marker recorded against them may find they cannot open bank accounts, or have existing ones closed. See what a CIFAS marker is for how markers work. A closure does not always mean a marker exists.

What are the notice rules for closing a bank account?

The rules sit in the Payment Services Regulations 2017 (regulations 51 to 51D). They were substituted with effect from 28 April 2026 by the Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 (SI 2025/688). The pages we read on legislation.gov.uk on 30 September 2026 showed this as the latest revised version. Which rule applies depends on when the contract was entered into.

Contracts entered into on or after 28 April 2026. For a contract with no fixed end date, the provider must give you a notice of termination. It must be given at least 90 days before the termination takes effect.

Contracts entered into before 28 April 2026. For a contract with no fixed end date, the provider can end it by giving at least two months’ notice, if the contract says so.

Your own right to close. You can end the contract at any time, unless you and the provider have agreed a notice period, which cannot exceed one month.

The Financial Ombudsman Service also says that banks may set longer notice periods in their terms and conditions.

Does a bank have to explain why it closed my account?

It depends on when the account was opened.

For contracts entered into on or after 28 April 2026, the notice of termination must contain an explanation of the reasons that is “sufficiently detailed and specific to enable the payment service user to understand why the framework contract is being terminated”. The notice must also say how to complain to the provider, and whether you have a right to complain to the Financial Ombudsman Service.

For a basic bank account, the 2025 regulations make matching changes to the Payment Accounts Regulations 2015. Those changes cover the notice period, the explanation of reasons (unless giving it would be unlawful) and, when an application for a basic account is refused, the reason given and how to complain.

For accounts opened before 28 April 2026, the Financial Ombudsman Service says firms did not have to explain the closure, although it can be helpful for them to do so.

If another legal requirement conflicts with the notice rules, the other requirement takes precedence to the extent of the conflict. The legislation itself does not say which conflicting requirements this covers in practice.

When can a bank close an account without notice?

The requirement to give a termination notice at all does not apply in the following situations listed in regulation 51C:

• the provider is required to carry out customer due diligence under the money laundering regulations and cannot do so as required
• the account must be closed under section 40G of the Immigration Act 2014
• the provider has reasonable grounds to suspect a service under the contract has been, is being or will be used in connection with a serious crime
• the FCA, the Treasury or the Secretary of State require the contract to be terminated in the exercise of their powers
• the provider reasonably believes that, while providing goods or services to a third party, you engaged in conduct that involves or is likely to involve an offence, and the account was used in connection with that conduct

Separately, regulation 51D removes the 90-day minimum, but not the duty to give a notice, in two cases: where the provider considers your conduct towards a person acting for it amounts to specified public order or harassment offences, or where you gave incorrect information when entering the contract that would have led the provider not to enter it. In those cases the notice must be given “without delay following a decision” to terminate.

What happens to the rules if I have a CIFAS marker?

The regulations above do not mention fraud markers. They set out when a provider must give notice and reasons, and when it need not. A marker is filed by a member organisation that has reasonable grounds to believe fraud or financial crime was committed or attempted, and the Financial Ombudsman Service says the evidence should be clear, relevant and rigorous. If you want to know whether a marker exists, how to check if you have a CIFAS marker explains the route.

How do I complain about a bank account closure?

The route set out by the FCA has three steps.

1. Complain to the firm. Tell it what happened and when, and ask it to put things right.
2. Wait for its response. In general, firms must give you their outcome in writing within 8 weeks. For payment service providers and e-money issuers, the FCA says they must respond to certain complaints within 15 business days, with a final response by day 35.
3. Go to the Financial Ombudsman Service. It is described by the FCA as a free, independent service for settling disputes between financial services firms and their customers. The FCA says to contact it within six months of the firm’s final response, or it may not be able to help.

The FCA also says you must generally complain within 6 years of the problem happening or within 3 years of realising you had cause to complain.

When looking at a closure complaint, the Financial Ombudsman Service says it considers the rules in force at the time of the closure, the bank’s explanation and supporting evidence, its terms and conditions including notice periods, the notice letter, and whether you had access to the account during the notice period.

What did the FCA find about de-banking?

The FCA reviewed payment account access and closures and published its findings in 2023, with an update in September 2024. It reported that the evidence it reviewed did not indicate accounts were closed because of customers’ political beliefs or lawfully held views. The regulator’s update directed its expectations to payment account providers and trade associations. The government press release of 28 April 2025 that announced the rules said they were intended to give customers more notice, an explanation and more opportunity to challenge decisions.