UK Finance has published a set of principles setting out the approach that banks should take when communicating a decision to a customer that it cannot offer, or continue with, the provision of its service.
In each case, the bank must ensure the customer is treated fairly. In addition banks:
- must assess all existing and prospective customers on a proportionate, objective and non-discriminatory basis;
- must take account of the laws and regulations in the jurisdictions in which they operate;
- communicate with the customer about its decision in a sensitive and easy to understand manner;
- must balance their product and service offerings with occasions where cannot offer, or continue with, its services to a customer;
- must communicate that it cannot offer, or continue with, the provision of a service so far as is feasible and permissible;
- should discuss the matter with the customer, so far as is feasible and permissible, if it is considering whether it should not offer, or continue with, the provision of a service to a customer;
- must take into account situations where it may not be appropriate or permissible for a bank to engage in a dialogue to explain their reasoning; and
- should consider the importance of the bank engaging with its customer following an exit decision.