Thousands of Britons living in the EU have said their UK bank accounts will be closed Money

Thousands of Britons living in the European Union will have their UK bank accounts closed by the end of the year due to the UK’s failure to sign a post-Brexit trade agreement.

Lloyds, Barclays and Kouts retailers and merchants have informed customers that they will lose their accounts before or when the BRACSIT transfer period expires on December 31 and more banks will expect them to follow suit.

Lloyds Banking Group, which includes Halifax and Bank of Scotland, contacted 13,000 customers in the Netherlands, Slovakia, Germany, Ireland and Portugal, warning them that they must make alternative arrangements as the bank is no longer allowed to provide services.

A spokesman said: “We have asked in writing to a small number of customers living in the affected EU countries that we regret that we will no longer be able to provide them UK-based banking services due to their departure from the EU.

“We want to keep customers informed and advise on the next steps.”

UK financial services can currently trade across the European Economic Area (EEA) because member countries are bound by the same regulatory structure.

This system, known as “passporting”, expires at the end of the year, and as long as the UK can continue to provide services to UK customers, EU legislation has not done so.

Without a trade agreement with the EU, UK financial institutions will often have to abide by rules that vary from country to country and depending on what kind of services are provided by the bank.

Last week, the Dutch National Bank confirmed that UK banks would no longer be able to provide current or savings accounts to retail customers in the Netherlands.

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Customers who are transferring their accounts to banks with companies owned by EU-based affiliates, but banks that do not have an EU hand, must apply for a license to trade in each EEA country. Some banks have a very small European customer base

A Lloyds customer said he feared being cut off from paying his UK pension after the bank informed him that he would no longer be able to use his current and savings accounts after 2 November. His balance will be returned to him as a check and after that date all payments will be returned to the sender.

“I don’t know what will happen to HMRC or council tax exemptions and what will happen to our own property bills in the UK,” he said.

” I don’t know that it is possible to arrange direct debit and standing orders from Dutch banks to UK institutions, and that it would cost a lot to return the money sent from the net to the sender or to convert me.

Barclays has also informed customers across the EEA that their accounts will be closed.

A man living in Germany was told he could no longer use his Barclays card, which he relied on for transactions between the UK.

The customer, who did not want to be named, said: “I have had the card for 40 years and will pay it monthly from my pension, which is paid into my UK account, so I am not sure if I qualify for a German credit card.”

He said he owns a property in the UK and he has paid taxes in the country and he “wants to maintain my financial system if I need to live there again”.

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A spokesman for Barclays said: “In light of the UK’s departure from the European Union in late 2020, we will continue to review customer service services within the EEA and will be in direct contact with affected customers.”

Other banks have not yet decided on future arrangements. Santander and NatWest said they were reviewing the situation and had no plans to withdraw retail or corporate accounts at present.

HSBC, which has a large customer base in France, Germany and Switzerland, said that as an international bank it could continue to serve UK customers across the European Union, but would notify them of any changes that could affect services.

The UK’s financial services are regulated by the Financial Conduct Authority, which said it expected banks to engage with national regulators to assess the impact of local laws on customers and to inform customers of any changes on a regular basis.

According to financial trading firm UK Finance, the laws of 30 different countries will have to be reduced if banks can continue to serve customers.

Where possible, companies want to provide banking services to customers living in EEA after the company, ”said a spokesperson.

“Each customer will vary depending on the operating model of their bank or supplier, the product or service being provided and the legal and regulatory framework in the country in which they live.”

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