(Bloomberg) -- NatWest Group Plc and Barclays Plc got the most complaints over decisions to close bank accounts last year, according to figures compiled by the UK’s financial ombudsman.

Customers complained about each bank 274 times in 2022/23, figures supplied to Bloomberg showed. This includes cases linked to NatWest’s Royal Bank of Scotland brand. 

The data from the Financial Ombudsman Service, an independent body that settles issues between customers and lenders, show NatWest was the most complained-about bank for the past three years in terms of account closures, although the absolute number for all the lenders is a fraction of the millions of accounts they each service.

While it’s not clear why these accounts were closed, the cases highlight how some Britons face similar issues to politician-turned-pundit Nigel Farage, whose account with NatWest’s upmarket Coutts subsidiary was shuttered in part due to his political views. 

The row led on Wednesday to the resignation of NatWest Chief Executive Officer Alison Rose hours after she confirmed she had multiple conversations about the bank’s business relationship with Farage with a member of the press, in breach of client confidentiality. 

Rose’s departure has shone a spotlight on the issue of how banks go about closing their customers’ accounts. In most cases complaints result in no action, with uphold rates for the claims varying between 9% and 32% for the biggest banks, according to the ombudsman.

A spokesman for NatWest said: “Like all UK regulated banking institutions, we are subject to legal and regulatory requirements, and we treat compliance with them as a matter of priority. This may mean we are required to delay or refuse to act on a customer’s instructions, and/or suspend or restrict a customer’s account.” The spokesman said that the FOS data was unverified.

A spokesman for Barclays said: “Decisions to close customer accounts are only made after very careful consideration and based on all the facts available to us at the time. Our statistics show that in cases referred to the Financial Ombudsman Service between 2020 – 2022 they have agreed with the action of the bank in around two-thirds of the complaints they have reviewed.”

Spokespeople for HSBC UK, Lloyds Banking Group Plc, Monzo, TSB and Santander UK didn’t comment. A spokeswoman for Nationwide said account closures were rare: “While we are always disappointed to receive any complaints, where account closure complaints have been escalated to the Ombudsman over the past year, no decisions were overturned.”

In total, the FOS received a total of 1,389 complaints related to closed bank accounts last year, the majority of which relate to the UK’s largest banking groups. Still, these cases are only a fraction of the 165,149 new complaints received by the FOS last year.

Speaking to reporters on Wednesday, Lloyds Chief Executive Officer Charlie Nunn said the bank did not take into consideration its customers’ personal and political views when deciding to close their accounts. “We’re confident that is the right policy,” said Nunn.

“Account closures should always be carried out in line with the bank’s terms and conditions,” a spokesperson for the FOS said in an emailed statement. “If consumers are concerned they haven’t been treated fairly, they should contact the Financial Ombudsman Service and we’ll see if we can help.”

The government is planning changes to the rules around closing accounts. This could mean revisiting the extra checks for so-called politically-exposed people, who are considered more at-risk of money laundering. Removing this scrutiny could facilitate criminals, according to Margaret Hodge, Labour MP and chair of the all party parliamentary group on anti-corruption and responsible tax. 

“Any government review must strike the right balance between individual rights and protecting us from criminality and wrongdoing,” Hodge said in a statement. “We don’t want to be throwing the baby out with the bathwater.”

--With assistance from Natasha White.

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