Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what guidance her Department has issued for banks on reporting customer account closures while complaints remain unresolved by the Financial Ombudsman Service.

In June 2025, the Government legislated to introduce stronger protections for customers in cases of bank account closure.

The measures we have introduced extend the minimum notice period of termination from two months to 90 days and place a new requirement on banks and other providers to give a sufficiently detailed and specific explanation to the customer so they understand why their service is being terminated, subject to certain exceptions. Where providers give a notice of termination to a customer, they must advise the customer on how they can make a complaint and of any right they may have to complain to the Financial Ombudsman Service (FOS). These changes will take effect for relevant new contracts from 28 April 2026. Guidance on implementing requirements would be a matter for the relevant regulators.

The Financial Conduct Authority’s rules on how the FOS should handle complaints state that ‘The ombudsman will attempt to resolve complaints at the earliest possible stage’. A number of factors may affect the time it takes for the FOS to resolve complaints that are referred to it. In 2023-2024, the FOS resolved over half of its cases within three months.