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UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 11:23 am
by tomcourtney
Ex-pat bank accounts closed due to Brexit
Money Box

Thousands of British people living in European countries have been told their UK bank accounts will be closed by the end of the year because of Brexit. Money Box has learnt that Lloyds Bank and Barclaycard have been writing to customers telling them to cut up their cards and pay off any outstanding overdrafts or debts in two months unless they can provide a UK address where they are resident.

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 11:25 am
by tomcourtney

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 11:29 am
by evansmr1
That is only 2 banks. Why frighten folk?

All others are not changing. I have 3, NatWest, Nationwide and Santander.

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 11:41 am
by tomcourtney
The program was aired yesterday and a friend of mine listened to it. He is a consultant in International trade And finance.
Apparently the FCA, financial services authority loses its authority/ reciprocal agreements with Europe after Brexit and they are the driving force. If that is the case it will not be limited to the two banks mentioned in the program summary posted.
The program is not yet available to listen to on catchup so I will be contacting my bank on Monday to get more info.
It is not my intention to frighten anyone but there may be a cause for concern and I wondered if anyone had received any communications from their banks yet.

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 12:09 pm
by Kilkis
tomcourtney wrote:...The program is not yet available to listen to on catchup ...


I just followed the link in your previous post and it plays for me?

I have a Lloyds account registered to my Greek address and I haven't been contacted yet. I will report back if I do. I certainly don't intend to contact them. I have a bit of a phobia about wasps so I never go round poking their nests with a stick.

I don't understand the attitude of UK banks. It is very common for people to live in another country but still have income and expenditure in the UK. How can somebody do that if they cannot have a UK bank account? An EU Directive a few years ago forced EU countries to at least provide basic banking facilities for EU citizens that are not resident. I wonder if those accounts will disappear? If they do I wonder if the EU will reciprocate and prevent anybody who is resident in the UK from having a bank account anywhere in the EU? That would certainly be a problem for people who have a second home here but are not resident.

Warwick

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 1:47 pm
by Kilkis
I've now listened to the broadcast. It all relates to EU passporting. At the moment UK banks can offer banking services to EU resident customers because of banking passporting. That will come to an end at the end of this year. From the 1 January 2021 if a UK bank wants to offer banking services to a customer in another EU country it will need to establish a legal entity in that country. That means to offer services to customers in all EU countries each bank would need to establish 27 legal entities, one in each of the 27 countries. Banks are thus assessing where they think it would be commercially beneficial to do that and where it wouldn't. This means that it will vary from bank to bank and from country to country.

As an example Barclays and HSBC both already have a legal entity established in Greece so it would not be a problem for them to continue to offer services to ex-pats. HSBC are going through a massive restructuring, however, so there is no guarantee how long it will continue.

According to the Telegraph, Lloyds have written to 13,000 personal and business customers in Holland, Germany, Ireland, Italy, Portugal and Slovakia. It doesn't say anything about Greece but, as far as I can see, Lloyds do not have a legal entity here and I would be surprised if it was commercially viable for them to open one simply to service ex-pats.

RBS/Nat West used to have a presence but I think they no longer do. Santander don't have a presence. Both have said that they have no plans at present to close expat customer accounts. I can't imagine the smaller banks having a legal presence or it being worth them establishing one. It's looking a bit thin folks.

While I don't think this issue relates to the FCA, it is possible that if some banks do allow expats to continue having accounts with an EU address the accounts of those clients might not, and I stress might not, qualify for compensation under the FSCS if their bank failed. That is not certain.

Warwick

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 2:30 pm
by Tim
This is precisely why the first rule of being expatriate is to keep a UK address. I'm sure Lloyds don't care where I live so long as they have an address in UK for me.

Tim

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 3:41 pm
by Kilkis
Completely agree, Tim.

Warwick

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 5:00 pm
by Kamisiana
According to some wise old forum members if you keep a UK address you are only pretending to live in Crete :roll: :wink:

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 5:11 pm
by Tim
Kamisiana wrote:According to some wise old forum members if you keep a UK address you are only pretending to live in Crete :roll: :wink:


Excellent strategy! I'll just pretend it's been p****ng down all day, then. :lol:

Tim

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 6:10 pm
by margarita
Tim wrote:This is precisely why the first rule of being expatriate is to keep a UK address. I'm sure Lloyds don't care where I live so long as they have an address in UK for me.

Tim


How can you do that without involving family or friends?

Re: UK Bank accounts for ex pats

Posted: Sun Sep 20, 2020 7:09 pm
by Tim
margarita wrote:
Tim wrote:This is precisely why the first rule of being expatriate is to keep a UK address. I'm sure Lloyds don't care where I live so long as they have an address in UK for me.

Tim


How can you do that without involving family or friends?


I'm not sure I understand your question, margarita. You make it sound as if using a friend or family member as an accommodation address is somehow underhand or illegal. You can give banks, amazon, ebay or anyone else any address as far as I'm aware, as long as you're not trying to commit some sort of deception. I don't think it in any way implies residency, if that's what you mean - it's merely an address at which I can be reached.

Tim

Re: UK Bank accounts for ex pats

Posted: Mon Sep 21, 2020 9:43 am
by bobscott
Tim wrote:
margarita wrote:
Tim wrote:This is precisely why the first rule of being expatriate is to keep a UK address. I'm sure Lloyds don't care where I live so long as they have an address in UK for me.

Tim


How can you do that without involving family or friends?


I'm not sure I understand your question, margarita. You make it sound as if using a friend or family member as an accommodation address is somehow underhand or illegal. You can give banks, amazon, ebay or anyone else any address as far as I'm aware, as long as you're not trying to commit some sort of deception. I don't think it in any way implies residency, if that's what you mean - it's merely an address at which I can be reached.

Tim


If you sign a bit of paper that says your address is (wherever), there is certainly an implication that you live there. If you sign a bit of paper that says that 'one of your addresses is (wherever)' that could be different. Things could get very difficult if, for example your UK bank rings your UK address to talk to you, and then is told that you are out and will ring them back (from your location in Greece, if your UK proxy can get the message to you). Likewise if you ring your UK bank from Greece and they call you back at your uk 'address'. Seems to me there is some deception there. Bob.

Re: UK Bank accounts for ex pats

Posted: Mon Sep 21, 2020 9:47 am
by Tim
I disagree, bob. Banks don't ring 'addresses', they ring phone numbers. If my bank rings me, they will find me on the end of the phone wherever in the world I happen to be. No deception involved or required.

Tim

Re: UK Bank accounts for ex pats

Posted: Mon Sep 21, 2020 10:04 am
by margarita
Tim wrote:
margarita wrote:
Tim wrote:This is precisely why the first rule of being expatriate is to keep a UK address. I'm sure Lloyds don't care where I live so long as they have an address in UK for me.

Tim


How can you do that without involving family or friends?


I'm not sure I understand your question, margarita. You make it sound as if using a friend or family member as an accommodation address is somehow underhand or illegal. You can give banks, amazon, ebay or anyone else any address as far as I'm aware, as long as you're not trying to commit some sort of deception. I don't think it in any way implies residency, if that's what you mean - it's merely an address at which I can be reached.

Tim


Using some-one else's address seems underhand to me. Maybe the question should be "Why should you have to involve family or friends?"

Not everyone has friends or family in UK they can ask. Many people living on their own do not want other people associated with their address in case it has implications for their Council Tax reduction.