Shuts Door on UK Accounts of British Expat Customers of Barclays
Barclays Bank announces plans to close the UK current and savings accounts of British expats, a move to affect thousands of Barclays customers. Barclays bank contacted 13,000 British expats who live in Europe to tell them their accounts held in the UK would close as the bank is no longer allowed to offer services.
Barclays decision, confirmed on 25th September, will potentially leave these customers without access to their money. The bank has issued a six month notice to affected customers, urging them to transfer their funds to overseas accounts.
View money transfer options for Barclays funds here: Barclays Bank Money Transfers Abroad
No Access to Barclays Savings Accounts or Pensions for UK Expats
UK expats living abroad who bank with Barclays Bank are going to have their UK current or savings accounts closed, which could leave customers with no access to their savings and pensions.
Barclays began a review of its international offerings in 2021 and is now writing to customers with a six month warning and that a Barclays spokesman stated that “UK products are designed for customers living in Britain”. The Financial Conduct Authority (FCA) added that it was a commercial decision as banks are allowed to set their own rules on customers which they accept.
Under the latest closures, UK expats with cash ISAs and fixed-rate bonds will be able to keep their accounts unless they live in Estonia, Italy, the Netherlands or Slovakia.
The same rule applies to mortgage and loan holders with the UK wing of the bank. However, existing home loan customers will not be able to re-mortgage when their term ends.
Banks Setting Own Requirements Post Brexit
A FCA spokesman said that banks may set their own requirements on country of residence for account holders and must comply with local law and regulation when serving customers outside the UK.
“Whether or not banks decide to extend services to customers outside of the UK is a commercial decision for them, but we expect them to treat their customers fairly, comply with equalities legislation, and provide adequate notice to the customer if they decide to close their account. Customers who feel they have had their accounts closed unfairly have the right to complain to the Financial Ombudsman Service.”
A separate article published by The Guardian newspaper explained that financial services in the UK can currently trade across the European Economic Area (EEA) because member countries are bound by the same regulatory framework. The arrangement, known as “passporting” expires at the end of the year and, while the UK has legislated so that EU banks can continue to provide services for customers in Britain, the EU has not done the same.
Barclays No Longer Offering Personal, Current or Savings Accounts to UK Expats
A spokesperson for Barclays said: “We will no longer be offering personal current or savings accounts to retail customers with addresses registered with us outside of the United Kingdom, subject to limited exceptions. We are contacting impacted customers to give them advance notice of this decision and explain the next steps they need to take.”
However, for more “well off” expats, Barclays offers the option to open a global account, which offers online convenience and currency flexibility. However, to avoid a £40 monthly fee, they must maintain a balance of £100,000.
The move from Barclays Bank follows similar actions by rival banks. In 2021, Lloyds Banking Group told 13,000 expats based in Europe that their accounts in Britain would be closed.
British Expats Unable to Access Barclays Funds
Earlier in 2023, a British man who lives in France told of difficulties he faced trying to transfer money here following closure of his Barclays account. Barclays sent letters to clients in France requiring them to close their accounts, as the bank can no longer serve customers living in the EU (European Economic Area) due to Brexit.
The UK expat, who asked not to be named, said complications arose because Barclays closed his account a week before the date indicated in the letter. As his bank card was deactivated, he could not use his card details to access his online or telephone banking and transfer the remaining funds from his account.
Instead, he was sent a claims form to return, along with identity documents “certified by a member of our staff or by a Notary Public (qualified solicitor, any type of certified accountant), Embassy Consular or High Commission official.”
He says that documents certified by his local mairie – a common procedure in France – have not been accepted. A Barclays spokesperson confirmed the bank does accept ID certified by a town hall or notary in France, but said documents not in English require a translation which is certified in the same way. Those Barclays Bank customers were given six months notice before their accounts were closed.
The spokesperson said: “If a customer feels we have provided inaccurate or misleading information, we would encourage them to get in touch, so we can investigate, apologise and put things right.”
View money transfer options for Barclays funds here: Barclays Bank Money Transfers Abroad
Article updated: 29th September, 2023
