The Telegraph states that the bank 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.”
The lender cited by The Telegraph, has advised expats to open a global account with Barclays, however, they will need to maintain a balance of £100,000 in order to avoid a monthly charge of £40.
According to The Telegraph: “In 2021, Lloyds Banking Group, which owns Halifax and the Bank of Scotland, contacted 13,000 expats who live in Europe to tell them their accounts held in Britain would close as the bank is no longer allowed to offer services.”
Under the latest closures, those 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 remortgage when their term ends.
Crown employees and their spouses can also keep the accounts, and the bank will allow the account to remain open if the overseas address is for someone who manages the money, such as an accountant or lawyer.”
A FCA spokesman said “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 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.”
Further sharing that “The Dutch National Bank confirmed that UK banks will no longer be able to provide current or savings accounts to retail customers in the Netherlands.
Customers who bank with firms that own EU-based subsidiaries are having their accounts transferred, but banks that do not have an EU arm would have to apply for a licence to trade in each EEA country. Some banks have too small a customer base in the EU to justify the cost.”
You are a little late with this news! Barclays closed my current account and those of many of my compatriots in Portugal last September 2022 claiming new rules due to Brexit. I had banked with them since 1967, my UK pension was paid into my account that paid my life insurance by direct debit along with several other direct debits that were all cancelled and had to be farmed out to a relative in the UK. I also had to close my savings account and redeem my premium bonds as payments can only be made into a UK bank. Even an intervention by my MP to Barclays CEO did not warrant a personal response or give any details of the 'new rules'.
By Greg from Other on 26 Sep 2023, 08:31
Seems to be one of the consequences of leaving the European Union, and no doubt there will be many more other problems for British xpats coming down the road unfortunately.
By Brendan from Algarve on 26 Sep 2023, 11:33
I have banked with the Co-Op for many years and was very surprised when they recently accepted my Portuguese address. No problems with them at all, so perhaps Barclays customers should switch to the 'ethical bank'?
By Toby from Porto on 26 Sep 2023, 14:28
There is no need to farm direct debits out to relatives, as anyone can open a Wise account and get EU and UK bank account numbers that support direct debit as well as a multicurrency debit card. Wise pays interest on the account balances and does not charge any maintenance fee. For ordinary payment purposes, we don't need the staid banks.
By Thomas Frost from Porto on 26 Sep 2023, 18:31
Governments need to better control banks' fees and unilateral attitudes particularly towards singular customers. They just have to much power and profits.
By Diogo F. from Lisbon on 26 Sep 2023, 21:18
Just open an online account with wise.com. You will get a UK IBAN and account number. You can get get your pension and other UK earnings paid into this account. This old news bye the way - I had my Barclays account closed last year.
By Brian Jones from Algarve on 27 Sep 2023, 14:11
I don't recommend Wise, they're idiots. I was asked to supply documents to verify my account. So I sent them account statements from my Portuguese bank, showing income being paid in. They said they don't accept screen shots, which it wasn't, the statements had been downloaded from my bank's website. Then I phoned them and we agreed I'd send them more documents from my Portuguese bank account. They rejected them, foolishly stating that the documents I sent don't prove income! Crackers! How can a regular dividend payment each month into my account NOT be considered income? They've now frozen my account, and are asking for exactly the same information - proving Wise staff are total clowns. I'm going up complain to the UK Financial Ombudsman and will exact the highest penalty for their stupidity and foolishness. Wise should rename itself 'Stupid' because that's what they are.
By Billy Bissett from Porto on 27 Sep 2023, 18:13