By Iain Withers and Huw Jones
LONDON (Reuters) - Britain's finance ministry will request a meeting with major lenders to discuss concerns that banks have closed some customer accounts over their political views, after a public spat between former Brexit party leader Nigel Farage and NatWest (LON:NWG).
Financial services minister Andrew Griffith will tell banks and fintechs, including NatWest, Lloyds (LON:LLOY), HSBC (LON:HSBA) and Barclays (LON:BARC), to take action to ensure customers do not lose access to services over their views, according to a draft of the letter due to be sent on Monday and seen by Reuters.
The government outlined reforms last week that would require banks to give more notice of account closures and explain their reasons. While these haven't yet come into force, the letter called on banks to act now to protect their customers' right to lawful freedom of expression.
"The Government strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it," the draft letter said.
Griffith said he was calling a roundtable of lenders "at the earliest opportunity" to ensure customers can access an account without fear of being "de-banked" for their lawful views.
NatWest CEO Alison Rose apologised to Farage on Thursday after the politician-turned-broadcaster circulated a document in the UK press showing his accounts at private bank Coutts were being closed partly over his views.
Farage's treatment by Coutts has drawn widespread criticism, including from Prime Minister Rishi Sunak, who tweeted last week: "No one should be barred from using basic services for their political views".
Banking lobby group UK Finance said last week that lenders could close an account for several reasons but must treat customers fairly.
Lawyers have expressed concerns the new rules may put banks in a difficult position where financial crime is suspected, as lenders are prevented under UK rules from "tipping off" potential suspects.
The Daily Telegraph newspaper reported overnight the finance ministry was "scrutinising" three other financial services firms - Metro Bank, Yorkshire Building Society (YBS), and American Express (NYSE:AXP) - over claims they had cut customers over their views.
"It is not our policy to close an account due to the political or personal beliefs of an individual or organisation," a Metro Bank spokesperson said.
A YBS spokesperson said that the lender never closes accounts based on different opinions or beliefs.
The Treasury and American Express did not respond to requests for comment on the report.