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NLJ this week: Debanking reforms mark a significant shift ahead for firms

20 June 2025
Issue: 8121 / Categories: Legal News , Banking , Financial services litigation , Regulatory , Consumer
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The rules and regulations on debanking (where a bank terminates its relationship with a customer) are due to change next year. In this week’s NLJ, David Hamilton, partner at Howard Kennedy, sets out the likely changes and explores the implications for payment services firms

Hamilton writes: ‘Since Nigel Farage’s public spat with Coutts Bank in 2023, the issue of debanking has drawn sustained public, political and regulatory scrutiny, becoming emblematic of broader concerns around financial exclusion and institutional accountability.’

The amended Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 (PSPA Regulations), due to apply from 28 April 2026, aim to strengthen protections for consumers and micro-enterprises when payment firms ‘debank’ them. Consequently, Hamilton says, payment services firms may be prompted to adopt a ‘more conservative risk appetite’. 

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
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Writing in NLJ this week, Thomas Rothwell and Kavish Shah of Falcon Chambers unpack the surprise inclusion of a ban on upwards-only rent reviews in the English Devolution and Community Empowerment Bill
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
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