Debanking Complaints Rise Sharply, Affecting Numerous Businesses

Complaints to the Financial Ombudsman Service increased by 44% last year, with a significant impact on small and medium-sized enterprises.

Complaints about debanking surged to 3,858 in the 2023/24 financial year, marking a 44% increase from the previous year.
Businesses, particularly small and medium-sized, are most affected by debanking, with an 81% increase in related complaints.
The Financial Ombudsman Service ruled in favor of complainants in 36% of debanking cases in 2023, up from 27% in previous years.
Parliament's Treasury Committee is set to highlight the financial impact of debanking on businesses in an upcoming report.
Banks are criticized for closing accounts with little warning, affecting legally operating businesses unfairly.