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ARTICLE · 07 MAY 2025

A New Regulation To Restrict 'Debanking'

Addleshaw Goddard
Addleshaw Goddard
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Addleshaw Goddard

Addleshaw Goddard

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On 28 April 2025, HM Treasury published a near-final version of the 'Payment Services and Payment Accounts (Contract Terminations) (Amendment) Regulations 2025'.

United KingdomFinance and Banking
Rebecca Hickman
Rebecca Hickman
David Pygott
David Pygott

On 28 April 2025, HM Treasury published a near-final version of the 'Payment Services and Payment Accounts (Contract Terminations) (Amendment) Regulations 2025'. This new legislation is designed to provide greater protection for users of payment services against the termination of those services (sometimes called 'debanking') without sufficient notice or explanation.

Addleshaw Goddard partners Rebecca Hickman (Financial Regulation) and David Pygott (Global Investigations) have been working closely with industry during the UK government's consultation over the new legislation. In this article, we provide a summary of what the current draft would change, and thoughts on some areas that firms will need to consider carefully as they move to implement it.

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