Jacob Rees-Mogg proposes an amendment to the Digital Markets Bill so that banks cannot explicitly blacklist customers. Photo: Paul Grover for the Telegraph < p>An anti-discrimination law that would prevent banks from blocking accounts based on the political views of customers is due to be introduced by Sir Jacob Rees-Mogg.
Former Business Secretary Proposes Amendment to Digital Markets Bill. to prevent banks from explicitly blacklisting clients with conflicting views.
Chancellor Jeremy Hunt ordered City Secretary Andrew Griffith to investigate overzealous lenders who close accounts because they disagree with clients. .
Controversy erupted after Nigel Farage, a leading Brexiteer, revealed that his account had been closed by his bank.
The vicar was also excluded from the client list after criticizing his creditor's position on LBGTQ matters.
Sir Jacob told The Telegraph: “I hope the government will accept this amendment. That's where the government wants to be; it helps their policy.
“It is right for banks to block individuals' accounts. The problem is that they do this on too many occasions. On an individual basis this may be reasonable, but it happens all the time and makes you think the banks have plans.
“Without a bank account, you are not a citizen because we do not have cash protection in this country.
“Many stores no longer accept cash. If you don't have a bank account, you are not human. You hope the government will understand this amendment.”
Nigel Farage reported that his account was closed by the bank. Photo: Carl Court/Getty Images
The Digital Markets Bill aims to «extinguish unfair practices and encourage competition in digital markets.»
His amendment defines discrimination in terms of human rights violations. Banks will be required to provide customers with a written statement of their reasons within 30 days of the decision being made.
The customer will also be entitled to recover damages for financial loss, emotional stress, physical inconvenience and discomfort if the bank acted in violation of their obligations.
The move was taken in connection with an investigation by the Department of Defense. (MoD) following the closure of military contractors' accounts with the department.
The Department of Defense launched an investigation after dozens of defense companies complained they were denied banking services or charged higher rates due to the nature of their work.
Defence experts blame the rise of environmental, social and governance policies that encourage firms to invest «ethically».
«We must advocate for a strong defense industry»
James Cartlidge, Secretary of Defense Acquisitions, is now in talks with ADS, a trade organization representing 1,200 firms in the aerospace, defense and space industries, to discuss how the government can end this practice.
Ministers are concerned that this could jeopardize jobs and undermine the competitiveness of a sector that employs 417,000 people and supplies equipment to the armed forces.
“Russia's illegal invasion showed why we must advocate for a strong defense industry, without which we would not be able to provide Ukraine with the means to defend its freedom,” said Mr. Cartlidge.
“Defense enterprises large and small told me that the ESG rules have undermined them, from more expensive funding to being denied basic banking services.
“We are currently looking into the extent of this problem, but I clearly understand that a strong defense industry supports well-paid jobs across the UK and allows our armed forces to keep us safe. in dangerous times.”
Small defense businesses were denied opening accounts or were told that existing accounts would be closed and their balances returned.
They were also denied insurance, while larger firms struggle to raise capital.
An ADS study shows that the share of investment funds that exclude the defense sector on ethical grounds has risen from 59% in 2021 to 91% this year.
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