Sharon, who lives in the Netherlands, was surprised to receive a letter stating that her current account would be closed until she could provide a UK address.
“I was shocked to receive a notification that my bank account would be closed in two months,” said Sharon Clark, a Briton who has lived in the Netherlands for 20 years and owns banks with Lloyds.
“They said my account would be closed and I would have to cut my card until I gave the UK address.”
He is one of thousands of British expatriates living in the European Union who are being told their bank accounts will be closed because of Brexit.
Lloyds Bank has written to 13,000 individual and business customers stating that it will no longer be able to offer banking services after the Brexit transition period ends on December 31.
And Money Boxx got Barclays, Barclayscards and Cassettes – which are owned by the NatWest Group – doing the same.
Experts say it is because lenders will lose their EU banking licenses, making operations too expensive in some countries.
However, HSBC and Santander say they have no plans to close British expat accounts in the EU.
Ms Clark says she was given an account in early November to close her account and transfer all money, standing orders and regular payments to another bank.
She says she has never had a financial problem with Lloyds, keeping them bankoded for “decades”.
Robert Kane, who lives in Spain, was asked to close his Barclacard account
Similar letters have been sent to Britons living in the Netherlands, Slovakia, Germany, Ireland, Italy and Portugal.
One of them is Robert Kane, who lives in Spain and has a Barclays credit card.
“I find it unbelievable that Barclays would lose thousands of customers because of Brexit,” says Robert.
“I don’t have a UK address because I live in Spain and have been doing so for the last 14 years. They gave me no advice except to cut my card, cancel the regular payment and pay the outstanding amount.”
A source from NatWest, who owns Quotes, says there is no intention to close the account unless there is another option and that customers who are affected will be contacted.
Banks have told customers that they will cut off their bank cards if they do not have a UK address
‘Postcode Lottery’
Sarah Hall, an ally in the UK at King’s College London’s research unit, Changing Europe, says EU-wide banking rules will not apply to Britain after Brexit.
UK banks will no longer be allowed to provide services to customers in the EU without a proper banking license.
This is known as a passport, a system for banks in the EU that allows them to trade freely in any other state in the European Economic Area (EEA) without the need for further authorization.
Sara said that although HSBC and Santander will still offer banking, others feel it is not commercially viable.
“Some UK banks have decided that the size and scale of the client base is small, not profitable enough to issue a warrant to a subsidiary, so they have decided that they will exit the market. There is a potential postcode lottery.
“This means that the market will be harder to navigate as a consumer. It is less precise and may mean fewer options and may have lower interest rates and lower savings rates due to less competition.”
Variable performance
In a statement, Lloyds said: “We have written to many customers in the affected EU countries that, due to the UK’s exit from the EU, sadly we will no longer be able to provide them with some UK-based banking services.”
Barclays will not disclose how many accounts will be closed, but said it will contact affected customers.
The finance industry is working hard to prepare for Brexit, UK trade body UK Fine said.
“Wherever possible, companies want to continue providing banking services to customers living in EEA after the transition period.
“The impact on each customer will vary depending on the operating operating model, product or service being provided by their bank or provider and the legal and regulatory framework in which they live in the country.”
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