Changes to financial services begin to bite
Leaving the EU could affect some of our customers, states Barclaycard
A BRITISH resident has told Costa Blanca News that his Barclaycard account is going to be closed by his bank.
The financial services provider wrote to the client, who is a resident in Alicante province, to say that this would be done on November 16.
They explained that they had already stated in March of this year that leaving the European Union ‘ could affect some of our customers with an address in the European Economic Area ( EEA).
The letter adds: “Unfortunately we now need to let you know that your account will be closed on November 16 unless you provide us with a UK residential address.”
They add that it is ‘ easy to keep your account going if you are a resident in the UK’.
Last week Costa Blanca News revealed that Sir Roger Gale MP had asked the UK Treasury to supply information on what steps the Chancellor of the Exchequer is taking to ensure that passporting arrangements and banking facilities used by UK citizens in EU countries will be maintained after December 31.
The written answer from the Treasury noted that the UK authorities ‘ have taken all the action we can to mitigate risks of disruption to cross- border financial services at the end of the Transition Period ( TP), including
confirming that the Temporary Permissions Regime will apply from the end of the TP’.
“But whether UK firms can service EEA- based retail customers remains a matter of local law and regulation in each country,” stated the Treasury.
“We expect banks to act lawfully and in accordance with local regulators’ expectations.
“We also expect that banks work to ensure good outcomes for their customers and provide timely communications to enable them to make appropriate decisions and take necessary steps.
“If customers are concerned then they should speak to their provider.”
Financial management company Blacktower recommended that Britons in Spain confirm ‘ any impact to the status of your bank account with your bank’ and advised expats to ‘ open a bank account in their country of residence to err on the side of caution’.
Last week Mel Stride MP, chairman of the Treasury Committee, stated that Britons living in EU countries must be given enough time to make alternative arrangements if they are affected.
He said: “Many British expats in the EU are being told that their UK bank accounts will be terminated at the end of the year.
“It’s vital that they’re given sufficient warning so that they have time to make alternative arrangements.”
He has written to the Financial Conduct Authority ( FCA) to ask ‘ what length of notice period it considers sufficient, and how they make sure that firms adhere to it’.
Pensions
Roger Gale MP also asked the Chancellor of the Exchequer, ‘ if he will make provision to ensure that UK citizens resident in the remaining EU 27 countries are able to have British Civil Service and other state pensions paid into overseas bank accounts’.
The answer tabled to Sir Roger notes: “The Civil Service pension scheme offers the facility for members to have their pension paid into a foreign bank account.
“The amount received by overseas members is their pension entitlement in pounds sterling converted to the local currency using business exchange rates at the time the payment is made.
“The UK state pension will continue to be paid worldwide following our departure from the EU, either into a bank in a pensioner’s country of residence or a bank or building society in the UK.”