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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

Mourant—Stephen Alexander

Mourant—Stephen Alexander

Jersey litigation lead appointed to global STEP Council

mfg Solicitors—nine trainees

mfg Solicitors—nine trainees

Firm invests in future talent with new training cohort

360 Law Group—Anthony Gahan

360 Law Group—Anthony Gahan

Investment banking veteran appointed as chairman to drive global growth

NEWS
Artificial intelligence may be revolutionising the law, but its misuse could wreck cases and careers, warns Clare Arthurs of Penningtons Manches Cooper in this week's NLJ
Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
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