Sharon, who lives within the Netherlands, was shocked to obtain a letter saying her present account will probably be closed until she will be able to present a UK tackle
“I used to be shocked to obtain a notification saying that my checking account goes to be closed in two months,” says Sharon Clarke, a Briton who has been dwelling within the Netherlands for 20 years and who banks with Lloyds.
“They mentioned that until I present a UK tackle, my account will probably be closed and I am going to have to chop up my card.”
She is one in all hundreds of British expats dwelling within the EU who’re being instructed their financial institution accounts will probably be closed due to Brexit.
Lloyds Financial institution has written to 13,000 private and enterprise clients, saying it’ll now not have the ability to supply banking providers as soon as the Brexit transition period ends on 31 December.
And Cash Field discovered Barclays, Barclaycard and Coutts – which is owned by NatWest Group – are taking comparable motion.
Consultants say it’s as a result of lenders will lose their EU banking licences, making working in some nations too pricey.
Nevertheless, HSBC and Santander say they don’t have any plans to shut British expat accounts within the EU.
Ms Clarke says she has been given till early November to shut her account and switch all monies, standing orders and common funds to a different financial institution.
She says she has by no means had any monetary issues with Lloyds, having banked with them “for many years”.
Robert Kane, who lives in Spain, was instructed to shut his Barclaycard account
Britons dwelling within the Netherlands, Slovakia, Germany, Eire, Italy and Portugal have all been despatched comparable letters.
One in all them is Robert Kane, who lives in Spain and has a Barclaycard bank card.
“I discover this an unbelievable scenario that Barclaycard will lose so many hundreds of consumers due to Brexit,” Robert says.
“I haven’t got a UK tackle as I reside in Spain and have finished for the final 14 years. They didn’t supply me any recommendation aside from lower up my card, cancel any common funds and keep on paying excellent balances.”
A supply at NatWest, which owns Coutts, says it has no intention of closing accounts until there isn’t any different choice and any clients who could also be affected will probably be contacted.
Banks have instructed clients to chop up their financial institution playing cards if they do not have a UK tackle
‘Postcode lottery’
Sarah Corridor, a fellow at UK in a Altering Europe, a analysis unit at King’s Faculty London, says that EU-wide banking guidelines won’t apply to Britain after Brexit.
UK banks will now not be allowed to offer providers to clients within the EU with out the suitable banking licences.
This is called passporting, a system for banks within the EU which permits them to commerce freely in another state within the European Financial Space (EEA) with out the necessity for extra authorisation.
Sarah mentioned that though HSBC and Santander will nonetheless supply banking, others really feel it’s not worthwhile commercially.
“Some UK banks determined the scale and scale of the consumer base is small, not worthwhile sufficient to warrant a subsidiary, in order that they have decided they are going to exit that market. It is a potential postcode lottery.
“This implies the market will probably be more durable to navigate as a buyer. It is much less sure and will imply much less selection and possibly greater curiosity and decrease saving charges due to much less competitors.”
Variable affect
In an announcement, Lloyds mentioned: “Now we have written to a small variety of clients dwelling in affected EU nations to allow them to know that because of the UK’s exit from the EU, regrettably we’ll now not have the ability to present them with some UK-based banking providers.”
Barclays wouldn’t reveal what number of accounts are going to be closed, however mentioned it will be contacting affected clients.
The UK commerce physique UK Finance mentioned the finance business had been working onerous to prepare for Brexit.
“The place doable, corporations wish to preserve offering banking providers to clients dwelling within the EEA after the transition interval.
“The affect on every buyer will range relying on the working mannequin of their financial institution or supplier, the services or products being supplied, and the authorized and regulatory framework within the nation during which they’re resident.”
