Closure of UK bank accounts to EU residents

[SusieT 358]

According to the europa website there is no reason for UK banks to close personal current accounts, especially those that are in use. From a friend working in banking it seems that business accounts will be closed probably credit cards, then loans and overdrafts are most likely to be closed.

[snowingagain 3,825]

58 minutes ago, SusieT said:

According to the europa website there is no reason for UK banks to close personal current accounts, 

 

Could you link the europa website please?  I mean the webpage stating this.

[lunaCH 971]

There is another thread on this running: https://www.toytowngermany.com/forum/topic/388628-has-your-bank-asked-you-to-close-your-uk-bank-account-due-to-brexit/

[SusieT 358]

4 hours ago, snowingagain said:

 

Could you link the europa website please?  I mean the webpage stating this.

Found it!  Although its from 2018 it does not appear to have been changed, and does refer to after the transition period  
https://ec.europa.eu/info/sites/info/files/brexit_files/info_site/banking_services_en.pdf 

Quote

 After the end of the transition period, under EU law, EU consumers may maintain a bank account with a UK-authorised entity, subject to the relevant UK legal requirements. If this bank account is with an UK-authorised entity in the United Kingdom, the deposit protection rules applicable in the United Kingdom apply. Bank accounts held with branches of UK-authorised entities in the EU may be protected according to the deposit protection regimes applicable in the relevant Member State. According to Directive 2014/49/EU, EU Member States shall check that branches established in their territory by a credit institution with a head office outside the EU have protection equivalent to that prescribed under this Directive. If protection is not equivalent, Member States may stipulate that these branches must join a deposit guarantee scheme. 36 EU customers should however be aware that this entity, which could also issue a payment card to them, will no longer be subject to transparency, consumer protection and security and fraud prevention requirements provided by Directive (EU) 2015/2366. 37

 

[snowingagain 3,825]

17 minutes ago, SusieT said:

After the end of the transition period, under EU law, EU consumers may maintain a bank account with a UK-authorised entity, subject to the relevant UK legal requirements

 

But It was not about the EU  banning people in the EU from having UK bank accounts.  It is more some UK banks deciding the whole process of getting licences is not worth it for them, to service the sort of account holders they have in the EU.  

[SusieT 358]

19 minutes ago, snowingagain said:

 

But It was not about the EU  banning people in the EU from having UK bank accounts.  It is more some UK banks deciding the whole process of getting licences is not worth it for them, to service the sort of account holders they have in the EU.  

Yes, but it is not requiring banks to hold an EU passport for consumer accounts. It states that after the transition, EU law will not apply, and that any protection will fall under UK law for consumers who hold accounts in the UK. 

[snowingagain 3,825]

1 hour ago, SusieT said:

Yes, but it is not requiring banks to hold an EU passport for consumer accounts. It states that after the transition, EU law will not apply, and that any protection will fall under UK law for consumers who hold accounts in the UK. 

 

I can see nothing clear about "no licence needed for  "consumer" accounts".  Things you have linked are opaque with no clear explanation of what they mean.  What really puzzles me is,  if what you confidently state is true, why are Lloyds (and others) citing this as the reason they are closing down current accounts of people with no UK address?

[SusieT 358]

13 minutes ago, snowingagain said:

 

I can see nothing clear about "no licence needed for  "consumer" accounts".  Things you have linked are opaque with no clear explanation of what they mean.  What really puzzles me is,  if what you confidently state is true, why are Lloyds (and others) citing this as the reason they are closing down current accounts of people with no UK address?

Lloyds have said that they are closing business accounts (I spoke to them as I have an account with them) but consumer accounts are going to remain unless they are unused or just sit with a small amount and do nothing. credit cards will most likely be stopped and closed when paid off. I was told that they are leaving accounts where people are having things paid in and out. I have not contacted other banks though, so it would seem that there could be various scenarios.

[keith2011 1,556]

1 hour ago, SusieT said:

credit cards will most likely be stopped and closed when paid off

That is not new, I had a Mastercard with the HSBC even though I had closed all other accounts with them years before and had a German address. From around 2000 through to 2008 they regularly increased my credit limit to over 20,000 GBP even though I only rarely using the card and then just for small purchases but during the Finance crisis they stopped the card about a month after extending the credit limit by a further 1000 GBP and it was fully paid up.

[Feierabend 975]

2 hours ago, snowingagain said:

 

I can see nothing clear about "no licence needed for  "consumer" accounts".  Things you have linked are opaque with no clear explanation of what they mean.  What really puzzles me is,  if what you confidently state is true, why are Lloyds (and others) citing this as the reason they are closing down current accounts of people with no UK address?

 

In the EU statement the important word I think is "may."

...EU consumers may maintain a bank account with a UK-authorised entity ...

 

Doesn't mean the banks must continue ro offer the personal accounts, oder?

  

[optimista 4,897]

No bank must offer personal accounts or any other account. They "offer" a service... If your business to them is more hassle than it's worth (banking regulations are getting denser and tighter), then they will end the banking relationship between you and them. Same as you will do, if you get sick of their idea of "service". It's a two-way thing. What roolz they invent in Brussels are ultimately subject to national roolz. Which may or may not be (correctly/appropriately) implemented.

 

And may I just say, what meaningless insubstantial piffle comes out of the UK government in terms of "advice". Should. May. Contact your provider. Bangs head against wall. People are being paid to produce such ineffectual shite. It is an art in itself coming up with such wording.

[lunaCH 971]

https://www.bbc.co.uk/news/business-54539268

 

only certain banks plan to shut accounts

 

Some, but not all, banks have decided it is not in their commercial interests to [continue offering services]

 

The message is clear: IF your bank wants to close the account,

either domicile the account in the UK by providing a UK address 

OR simply switch banks. 

 

[murphaph 6,985]

Best of luck opening a UK bank account with a German address. It's not that easy.

[RenegadeFurther 2,304]

10 minutes ago, murphaph said:

Best of luck opening a UK bank account with a German address. It's not that easy.

 

What about a transferwise account?

 

There must be a time when you think debating is not my thing.

 

Have you reached that point yet?

[murphaph 6,985]

A TransferWise account is not the same as a bank account. No overdraft facility for a start. It may suit some people but to suggest it's a universal replacement for a bank account is disingenuous.

 

The fact is Brexit is causing banks to close accounts held by EU residents. Opening another bank account with an EU address is nigh on impossible. Most people have a legacy account, opened when they had a UK address.

 

Even if only some banks are doing this, there ist LEDs competition in the market which is rarely good for customers. Brexit, once again, is shit.

[Smaug 5,845]

6 hours ago, murphaph said:

A TransferWise account is not the same as a bank account. No overdraft facility for a start. It may suit some people but to suggest it's a universal replacement for a bank account is disingenuous.

 
You are right, but I doubt traditional banks grant overdraft facilities to non-UK residents anyway. 

[lunaCH 971]

9 hours ago, murphaph said:

Opening another bank account with an EU address is nigh on impossible.

No it isn't. 

[ballygobackwards 97]

After I received info from my bank that from 31 December they would be closing all accounts from UK Citizens living here I spoke to another Northern Ireland bank about opening an account but they said you must appear personally with indentification otherwise it cannot be done. Are there any complications getting UK pensions paid tto a German Bank Account?

[HEM 10,069]

2 minutes ago, ballygobackwards said:

Are there any complications getting UK pensions paid tto a German Bank Account?

None at all.  The UK State Pensions folks will organise it for you via Worldlink.

[murphaph 6,985]

21 hours ago, ballygobackwards said:

After I received info from my bank that from 31 December they would be closing all accounts from UK Citizens living here I spoke to another Northern Ireland bank about opening an account but they said you must appear personally with indentification otherwise it cannot be done. Are there any complications getting UK pensions paid tto a German Bank Account?

That was my experience in the Republic as well. Impossible to open an account without doing it in person in branch. And only one bank would even go that far.

 

It's one thing retaining an account when you move abroad. It's another opening one from abroad with a foreign address.