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Sharon, who lives in the Netherlands, was surprised to receive a letter saying that her checking account would be closed unless she could provide an address in the UK.
“I was surprised to receive a notification saying that my bank account would be closed in two months,” says Sharon Clarke, a British woman who has been living in the Netherlands for 20 years and who works with Lloyds.
“They said that unless I provide a UK address my account will be closed and I will have to cut my card.”
She is one of thousands of British expats living in the EU who are told that their bank accounts will be closed due to Brexit.
Lloyds Bank has written to 13,000 personal and business clients, saying that it will no longer be able to offer banking services after the Brexit transition period ends on December 31.
And Money Box found that Barclays, Barclaycard and Coutts, which is owned by NatWest Group, are taking similar steps.
Experts say it’s because lenders will lose their EU banking licenses, making operating in some countries too expensive.
However, HSBC and Santander say they have no plans to close British expat accounts in the EU.
Clarke says she’s been given until early November to close her account and transfer all money, standing orders, and regular payments to another bank.
She says she has never had financial problems with Lloyds, having been banking with them “for decades.”
Robert Kane, who lives in Spain, was told to close his Barclaycard account
Similar letters have been sent to Brits living in the Netherlands, Slovakia, Germany, Ireland, Italy and Portugal.
One of them is Robert Kane, who lives in Spain and has a Barclaycard credit card.
“It seems to me an incredible situation that Barclaycard will lose so many thousands of customers due to Brexit,” says Robert.
“I don’t have an address in the UK because I live in Spain and have done so for the past 14 years. They offered me no advice other than to cut off my card, cancel regular payments and continue paying outstanding balances.
A source from NatWest, which owns Coutts, says it has no intention of closing accounts unless there is no other option and customers who may be affected will be contacted.
Banks have told customers to cut off their bank cards if they don’t have a UK address
‘Postal code lottery’
Sarah Hall, a UK fellow in a changing Europe, a research unit at King’s College London, says EU banking rules will not apply to Britain after Brexit.
UK banks will no longer be able to serve EU clients without proper banking licenses.
This is known as a passport, a system for EU banks that allows them to trade freely in any other state in the European Economic Area (EEA) without the need for further authorization.
Sarah said that although HSBC and Santander will continue to offer banking services, others believe that it is not worth commercially.
“Some UK banks decided that the size and scale of the customer base is small, not profitable enough to warrant a subsidiary, so they have determined that they will exit that market. It is a possible postal code lottery.
“This means it will be more difficult to navigate the market as a customer. It is less secure and could mean fewer options and perhaps higher interest and lower savings rates due to less competition.”
Variable impact
In a statement, Lloyds said: “We have written to a small number of customers living in the affected EU countries to inform them that due to the UK’s departure from the EU we will unfortunately no longer be able to provide them with some UK services. based on “.
Barclays did not disclose how many accounts will be closed, but said it would contact affected customers.
UK trade body UK Finance said the financial industry had been working hard to prepare for Brexit.
“Wherever possible, companies want to continue providing banking services to customers living in the EEA after the transition period.
“The impact on each client will vary according to the operating model of their bank or supplier, the product or service provided, and the legal and regulatory framework of the country in which they reside.”
