A closed bank account is stressful. A frozen account can be even worse. For individuals, it can mean being unable to pay rent, bills or everyday expenses. For businesses, it can disrupt wages, suppliers, tax payments and even day-to-day trading.

The UK government’s new “debanking” rules, which came into force from 28 April 2026, are designed to give customers more protection when accounts are closed.

But what do the changes actually mean?

Written by Peggy Lim, Solicitor

What is debanking?

“Debanking” is when a bank or payment provider closes someone’s account, or refuses to provide banking services.

This can happen for many reasons. Sometimes the account is inactive. Sometimes a product is withdrawn. In other cases, the bank may have concerns about fraud, financial crime, reputational risk, account activity or commercial reasons.

The issue became widely known after the Nigel Farage and Coutts/NatWest dispute in 2023, which raised a bigger question:

“Can someone lose access to banking because of who they are, what they do, what they believe, or because they are considered too risky or costly to serve?”

But debanking is not only about high-profile cases. Ordinary customers, small businesses, charities and community organisations can also be affected. For many people, the real concern is simple: what do you do if your account is suddenly closed or frozen with little explanation?

What is changing?

Under the new rules, customers should usually receive at least 90 days’ notice before their account is closed. They should also receive a clearer written explanation of why the decision has been made.

This does not mean every customer has a right to keep an account forever. Accounts can still be closed for legitimate reasons, including fraud concerns, financial crime risks, misuse of the account or breach of terms.

The change is mainly about fairness and process – more notice, clearer reasons and a better chance to respond.

Will customers always be told the full reason?

Not always. There will still be exceptions, especially where fraud, money laundering or sanctions concerns are involved.

In some cases, giving too much detail could interfere with an investigation or breach legal duties. This means that even under the new rules, customers may not always receive a full explanation – particularly where an account has been frozen because of suspected financial crime.

What about frozen bank accounts?

The new rules mainly deal with account closures, but many people face a related problem: their account is frozen. A frozen account can be even more urgent. The customer may still technically have the account, but they cannot access their money or use it normally.

This may happen because of fraud alerts, suspicious activity reviews, money laundering concerns, sanctions checks or internal compliance reviews. In these situations, the bank may give very little information. That can be frustrating, but there may be legal reasons for it. If financial crime concerns are involved, the bank may be restricted in what it can say.

What we often see in account closure and frozen account cases

Bank account closures and frozen accounts often leave people confused, anxious and unsure what to do next.

For many clients, the hardest part is not just the closure or freeze itself. It is the lack of clear information.

They may not know whether the issue is a routine review, a compliance concern, a fraud alert or something more serious. That uncertainty can be extremely stressful, especially for businesses that rely on the account every day.

The new rules should help in some account closure cases by giving customers more notice and clearer written reasons. However, they will not solve every problem.

Where an account is frozen because of suspected fraud, money laundering, sanctions concerns or another financial crime issue, the bank may still be limited in what it can say. That can make these cases difficult to resolve quickly.

What should you do if your account is closed or frozen?

Our advice is to act early. Do not ignore letters, emails or app messages from the bank, even if the explanation is brief or unclear.

Keep a full record of all communications, including screenshots of app messages, letters and emails, call logs, reference numbers and copies of documents sent to the bank.

We also advise clients to gather key documents as soon as possible. These may include proof of identity, proof of address, source of funds, invoices, contracts, payslips, tax records, business accounts or evidence explaining particular transactions.

If the bank’s reasons are unclear, ask for its position in writing. If the decision appears unfair, unexplained or incorrect, consider making a formal complaint. The complaint should explain the impact of the closure or freeze, such as missed payments, business disruption, reputational damage or inability to access essential funds.

If your account is frozen and you cannot access essential money, legal advice may be needed urgently – especially where wages, rent, mortgage payments, tax deadlines, business payments or basic living costs are affected. In some cases, it may also be necessary to ask whether limited access can be given for essential payments while the matter is reviewed.

At the same time, practical steps may be needed, such as opening an alternative account, informing payroll or key payers, updating payment details and protecting business cash flow.

How we can help

These cases often involve a difficult balance between the customer’s need to access their money and the bank’s legal duties to prevent fraud and financial crime.

We can help by reviewing the reason given by the bank, preparing a formal complaint, communicating with the bank, responding to information requests, escalating the matter where appropriate and considering whether the case should be referred to the Financial Ombudsman Service or dealt with through other legal routes.

Final thoughts

The new rules should make debanking less sudden and less unclear.

They will not stop every account closure, remove financial crime checks or guarantee a full explanation in every case. However, they should give many customers more notice, clearer reasons and more time to protect themselves.

If your bank account has been closed or frozen, do not ignore it. Read the notice carefully, ask questions, keep records and seek advice where needed.

If you are experiencing issues with a bank account closure or frozen account, please get in touch to discuss your options.

Have questions? Get in touch today!

Call our office on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on [email protected].

Or, use the contact form on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/contact/

For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.

James Cook

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Going on holiday should be a time to relax. But when something goes wrong abroad, it can quickly become stressful and confusing. Many travellers are unsure what rights they have, especially when they are outside the UK.

Whether it is a cancelled booking, unsafe accommodation, lost luggage, or even an incident involving local authorities, it is important to understand where you stand.

Written by Paul Cheuk, Solicitor

You might think the biggest risk on holiday is a delayed flight or a disappointing hotel. But recent reports suggest it can be far more serious. More than 1,700 British travellers have reportedly taken legal action after falling ill on package holidays in Cape Verde. Some cases involved infections such as salmonella and E coli, and a number of incidents have been reported as very serious.

It is a reminder that things can go wrong quickly when you are abroad, and not always in ways you expect. Whether it is a cancelled booking, unsafe accommodation, lost luggage, or even an incident involving local authorities, it is important to understand where you stand.

Package Holiday or Independent Travel

First and foremost, your rights may depend on how and where you booked your trip.

If you booked a package holiday through a UK travel company, you have stronger protection under UK law. This is mainly governed by the Package Travel and Linked Travel Arrangements Regulations 2018. Under these rules, the travel company is responsible for the services provided, such as flights, hotel, and transfers. If something goes wrong, you may be able to claim compensation directly from the company in the UK, even if the problem happened abroad.

In addition to traditional travel agencies, many packages offered directly by airlines or hotel websites will also fall within these rules if they include more than one service sold together for a single price. If you are unsure whether your booking is covered by the Regulations, you should consider seeking legal advice.

If you booked everything separately, your protection is more limited. You may need to deal with foreign providers directly, which can be more difficult.

This type of situation also highlights why package holiday protection is important. Where a trip is booked as a package, the travel company may be responsible if the accommodation or services fall below reasonable standards, including cases involving illness linked to the hotel environment.

When Things Go Wrong Abroad

There are many common problems that travellers face. These include situations where the hotel does not match what was promised, where conditions are poor or unsafe, where excursions are cancelled or badly managed, or where there are accidents or transport delays.

A high-profile personal injury claim was recently launched against the travel company Tui, with over 1700 people joining the legal action as of April 2026 after becoming ill on holiday in the Cape Verde islands. The claim is being led by lawyers from Irwin Mitchell, who believe at least eight Britons have died on holiday there. The BBC has obtained footage showing what appears to be undercooked food, buffets surrounded by flies as well as mould in hotel rooms.

While Irwin Mitchell have set out their intentions to resolve their cases with Tui amicably, they expect a High Court judge to make an order involving millions of pounds in payments of damages to Irwin Mitchell’s clients.

These recent large scale claims involving illness outbreaks at Cape Verde show that issues such as food hygiene, hotel standards, and health risks are not just minor inconveniences. They can lead to serious consequences if not handled properly.

If something happens, it is important to act early. You should report the issue to the hotel, tour operator, or local representative straight away. You should also take photos, keep receipts, and make a record of what happened. This evidence can be important later.

Dealing With Authorities Overseas

In more serious situations, such as illness, accidents, or disputes with hotels or tour operators, you may need to deal with local police or officials. This can feel unfamiliar and intimidating, especially if events escalate quickly while you are still trying to understand what has happened. It is important to remember that local laws apply, not UK law. Language differences can lead to misunderstandings, and anything you say may be recorded or used later.

If you are asked to give a statement or attend an interview, you should stay calm and seek advice if possible. You should not feel pressured to sign documents that you do not understand.

While UK lawyers may not be able to advise directly on foreign law, you should not hesitate to contact one. They can act as your first point of contact, help you understand the situation, and, where needed, refer you to appropriate local lawyers.

Medical Emergencies and Insurance

If you are injured or become ill abroad, your travel insurance is essential. Without insurance, medical bills abroad can be very high. It can cover treatment costs, hospital stays, and even emergency return to the UK.

Always contact your insurer as soon as possible. They may guide you on where to go for treatment and what costs are covered.

However, you should also be careful during the claims process. If the insurer starts asking detailed questions or carries out a longer investigation, it may be wise to seek legal advice. Providing incomplete or unclear information could lead to a refusal of coverage. Having a lawyer review your situation at an early stage can help avoid this risk.

Final Thoughts

Being abroad does not mean you have no rights. But it does mean things can be more complicated. The key is to stay calm, gather evidence, and avoid making rushed decisions.

At Lisa’s Law, we advise clients on disputes arising from holidays and travel issues, including matters that involve foreign providers or incidents overseas. If something has gone wrong on your trip, we can help you understand your options and what steps to take next.

Have questions? Get in touch today!

Call our office on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on [email protected].

Or, use the contact form on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/contact/

For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.

James Cook

See Full Bio

Significant increases in service charges are no longer unusual. What is increasingly concerning, however, is not the level of the increase itself, but the lack of substantiation behind it. Leaseholders are frequently presented with sharply higher demands, supported by little more than broad assertions about rising costs or “necessary works,” with no meaningful documentary evidence.

Written by Frankie Ng, Litigation Supervisor

From a litigation perspective, this is where the issue crystallises. The question is not simply whether a landlord is entitled to incur expenditure, but whether they can prove that the sums demanded are properly recoverable.

The legal framework is often misunderstood by managing agents. Under the Landlord and Tenant Act 1985, service charges are only payable to the extent that they are reasonably incurred and relate to works or services carried out to a reasonable standard. This is not a technicality. It is a statutory control on recovery. In practice, it imposes an evidential burden on the landlord or management company to justify what is being charged.

In many disputes, that burden is not met.

Shifting the dynamic away from the landlord

It is not uncommon to see demands issued without a clear breakdown, supported by incomplete accounts, or based on anticipated rather than actual expenditure. In some cases, key documents – contracts, invoices, or tendering records – are either missing or never properly obtained. From a contentious standpoint, these gaps are not minor defects; they go directly to enforceability.

Leaseholders are not passive recipients in this process and do have the ability to challenge service charges. The statutory rights to request summaries of costs and inspect supporting documentation are often the first step in shifting the dynamic. Once exercised properly, they force the landlord to move from assertion to evidence. Where that evidence is lacking, the strength of the landlord’s position deteriorates rapidly.

A further pressure point arises in the context of major works. The consultation requirements are frequently treated as a procedural formality, but failures in compliance can have substantive consequences. In litigation, defects in consultation are often deployed not merely as technical breaches, but as a basis to challenge the recoverability of significant elements of the claimed sums.

What role can the courts play?

Where matters escalate, the First-tier Tribunal (Property Chamber) becomes the central forum. Importantly, proceedings before the Tribunal are not limited to defensive action. Leaseholders can take the initiative and seek a determination on liability and reasonableness before any enforcement steps are taken. This is often a strategically advantageous position, particularly where the landlord’s evidential case is weak.

The courts have also made clear that reliance on lease wording alone is insufficient. In London Borough of Hounslow v Waaler [2017] EWCA Civ 45, the Court of Appeal confirmed that the exercise of a landlord’s discretion must itself be reasonable. This includes consideration of the financial impact on leaseholders and whether alternative, less expensive options were available. The decision is frequently relied upon in disputes where the scale of expenditure appears disproportionate to the benefit obtained.

In practice, many service charge disputes are won or lost well before any hearing. Early, focused engagement – particularly requests for underlying documents and targeted challenges to specific heads of cost—can expose weaknesses in the landlord’s position. In our experience, once a landlord is required to justify its figures in detail, it is not uncommon for positions to soften or for substantial reductions to be negotiated.

What distinguishes a routine complaint from a viable claim is evidence. A substantial increase, without substantiation, is not simply frustrating; it is often legally vulnerable.

If you are facing a significant increase in service charges and have not been provided with clear and adequate supporting documentation, it is important to consider your position at an early stage. These disputes are rarely resolved by accepting the demand at face value, and delay can weaken your strategic options.

How can our litigation team help?

Our litigation team regularly advises leaseholders on challenging service charges, from initial investigation through to representation before the First-tier Tribunal (Property Chamber). We focus on identifying evidential weaknesses, applying pressure at the right stage, and achieving commercially sensible outcomes.

If you would like to discuss a potential challenge or review your current position, please get in touch.

Have questions? Get in touch today!

Call our office on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on [email protected].

Or, use the contact form on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/contact/

For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.

James Cook

See Full Bio