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BREXIT

Brits in EU risk losing UK bank accounts ‘within weeks’

Some of Britain's biggest banks have begun contacting customers in European Union countries, warning them that their accounts will be closed down within weeks because the cost and complexity of operating without a continuation of pan-European banking rules is too much.

Brits in EU risk losing UK bank accounts 'within weeks'
Lloyds Bank expects to close at least 13,000 accounts. Photo: Lloyds Bank
According to a report in The Times, thousands of Britons who live in Europe face being stripped of their UK bank accounts and credit cards, because of the UK government's failure to agree rules for operating after Brexit. 
 
Each of the EU's 27 member states has different rules for cross-border bank accounts which will start to apply immediately the UK's transition period ends on 31st December 2020. 
 
“In some cases, continuing to serve customers would be incredibly complex, extremely expensive and very time-consuming, and simply would not make economic sense,” a source at one British bank told the newspaper. “This is passporting — this is the reality of Brexit.”
 
 
If a way is not found to continue pan-European banking rules, or passporting, UK banks will br breaking the law if they don't apply for new banking licenses in each European Union Country. 
 
 
Lloyds, Britain’s biggest banking group, began writing to customers in August, warning them that their bank accounts would  close down on December 31.
 
The bank estimates that 13,000 customers, including those based in Holland, Slovakia, Germany, Ireland, Italy and Portugal, would lose their accounts. 
 
“If customers have regular deposits into, or payments out of, their account, they will need to make other arrangements before their account is closed,” the bank said. 
 
Barclays and Coutts have also started contacting customers. 
 
“In light of the UK leaving the EU at the end of 2020, we continue to review the services we offer to customers within the European Economic Area (EEA), and any impacted customers will be contacted directly,” Barclays said in a statement. “The timings for account closure will depend on the type of product that a customer holds, but we will always give notice to customers.”
 
“In the event that no alternative to the European Economic Area passporting regime for financial services is agreed between the UK and EU, we have taken the difficult decision to withdraw from offering our services to clients who reside in the EEA,” Coutts said. 
 

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BREXIT

Scores of Britons in Denmark may not have received Brexit residency letter

A large number of British nationals who moved to Denmark under EU rules in 2020 may not have received a reminder from Danish authorities to update their residence status ahead of a Brexit deadline, meaning many missed the deadline and could face having to leave.

Scores of Britons in Denmark may not have received Brexit residency letter

Are you a British national in Denmark facing a situation similar to the one described in this article? If so, you can contact us here — we’d like to hear from you.

British nationals who registered as resident in Denmark under EU rules in 2020 – the last year in which EU free movement was available to UK citizens – may not have been officially notified by Danish authorities’ alerts that they needed to apply for updated residence status by the December 31st, 2021 deadline.

That means that people who moved to Denmark from the UK in the year 2020 are more likely to have missed the deadline.

Those who had been living in Denmark before 2020 were much more likely to have received the official notification by Danish authorities.

The issue has potentially serious consequences: the Danish Agency for International Recruitment and Integration (SIRI) is rejecting applications that were submitted late if the reason for late submission was that the applicant did not receive reminder letters in 2021.

As recently reported by The Local, Phil Russell, a 47-year-old financial services administrator who lives in the western part of Zealand, has received notice he must leave Denmark by early December after missing the deadline to apply for a post-Brexit residence permit.

SIRI sent reminders to UK nationals resident in Denmark to update their residence status under the terms of the Brexit Withdrawal Agreement prior to a December 31st, 2021 deadline. But Russell did not receive the reminders and eventually discovered he had missed the deadline just four days into January 2022.

READ ALSO: Briton living in Denmark urges authorities to reverse his deportation order

Russell’s situation appears to be far from unique. The Local has spoken with several other UK nationals in Denmark who say they did not receive the information letters. All of the UK nationals moved to Denmark in 2019 or 2020 and all of them registered as resident in the country in 2020.

“I am also a British person in Denmark who did not receive any notifications or reminders regarding the need to apply for new paperwork by the deadline,” a reader, who preferred to remain anonymous, told The Local via email.

“I tried to stay oriented to post-Brexit issues but have, to date, received no information regarding what is required of me post-Brexit and have never seen any of the ‘extensive ad campaigns’ which were apparently designed to inform people like me. I only became aware that I did not have the correct paperwork when leaving to visit the UK in June,” they said.

“I have called for updates regarding my application and have been told it is still being processed,” they said.

“It does seem unreasonable that a government agency is seemingly putting the responsibility on the resident to know of any changes that need to be made to government records, especially when SIRI has not contacted those who they are now seemingly penalising for applying late,” they said.

“I had not ever moved to a different country before this and I’ve certainly never needed to negotiate the complicated nature of Brexit before. I do not know what is normal or not when it comes to residency documents, so if something is required, I would expect to be contacted directly,” said the person, who was granted residency in Denmark in September 2020 under EU rules.

“I have felt failed by SIRI since I found out I had not been contacted at all, let alone three times. Had I known that I needed to reapply, I would have done so straight away,” they said, adding that they experience “daily anxiety knowing there is the possibility of my application being rejected due to its late submission”.

“If there has been a technical error on SIRI’s part, that they should not penalise residents for this,” they said.

READ ALSO: How do other EU countries’ post-Brexit residence permits compare to Denmark?

Two other people, who both registered as resident in Denmark in 2020 under EU rules, also said they had not received SIRI’s information letters.

“While I received my new permit, I also did not receive the letters about renewing,” Danny Maiorca, who moved to Denmark in September 2020 and registered as a resident the following month, told The Local via email.

Maiorca said the only reason he knew to apply for the updated residence permit was by regularly checking SIRI’s website in 2021.

After initially moving to Denmark in 2019, Alex Stuart registered as a resident under EU rules in 2020. He told The Local he also had not received all of SIRI’s information letters in 2021 and had submitted his post-Brexit residence application after the December 31st, 2021 deadline.

“SIRI hasn’t said anything to me yet, just that they are reviewing my case. But now that I see what they are saying to others I expect my answer won’t be very different,” he said.

The Local has contacted SIRI on repeated occasions to ask whether its information letters failed to reach all persons from the UK who moved to Denmark in 2020. We also asked whether it made sense to revoke the residency status of persons who submitted late applications after not receiving the letters.

The agency has yet to provide an answer but said it intends to respond to our questions. We will update this article or publish a new one once we receive a response.

In an internal record from SIRI which has been seen by The Local, the agency concludes that its information letters were a “supplementary service and part of an information campaign.”

The letters were also available on the agency’s website.

Not receiving the letters was therefore not to be considered an extenuating circumstance in an appeal against a rejected, late application, the agency notes in the internal memo, dated March this year.

SIRI has previously confirmed that as of September 30th, it had received 290 applications for post-Brexit continued residency status after the December 31st, 2021 deadline. Some 17,811 applications were received before the deadline.

Decisions on some applications made after the deadline are still being processed, meaning it is not clear how many UK nationals have already or could yet lose their residency rights.

In a written comment, the British Embassy in Copenhagen said it “is aware that a number of UK nationals residing in Denmark submitted applications for residency after the relevant deadline.”

“The Embassy has been working closely with the Danish authorities on implementation of the EU-UK Withdrawal Agreement and regularising the stay of those UK nationals who have chosen to make Denmark their home,” it said.

British Ambassador to Denmark Emma Hopkins has requested a meeting with the Danish authorities to discuss the application of the rules to UK nationals, the embassy added.

A spokesperson from the UK’s Foreign, Commonwealth & Development Office said that “anyone who applied before the deadline [December 31st, 2021, ed.] will have their rights protected, even if their application has yet to conclude. The Danish authorities will accept late applications if there are reasonable grounds for missing the deadline.”

The Facebook group British in Denmark, which seeks to provide advice and support for UK nationals who live in Denmark, said that of the group’s 1,400 members, only two who moved to Denmark in 2020 have confirmed they received the SIRI information letters.

While some subsequently applied to update their residence status after the deadline, others were able to meet the deadline because they found out about it through the group or via their personal network, a spokesperson from the group said.

“The problem is that if they arrived in 2020, a lot of people didn’t have that network,” the spokesperson said.

“It’s been left up to the specific countries to decide how they’re going to deal with the late applications. So it’s not written in the Withdrawal Agreement,” she noted.

“Each country can interpret it as long as you’re complying with the spirit of the Withdrawal Agreement,” she said.

The citizens’ rights section of the Withdrawal Agreement states that “where the deadline for submitting the application… is not respected by the persons concerned, the competent authorities shall assess all the circumstances and reasons for not respecting the deadline and shall allow those persons to submit an application within a reasonable further period of time if there are reasonable grounds for the failure to respect the deadline”.

The text of the agreement states that anyone living in an EU member state before the end of the transition period has the right to remain.

“In the spirit of the Withdrawal Agreement, everyone was sent a letter. But the people of 2020 didn’t get a letter,” the British in Denmark spokesperson said.

“We really want as many late applicants as possible to join our group. We’ve got people together to provide support for each other and the late applicants who are in there have found it really, really useful,” she added.

“There are devastating potential consequences for them to be facing this alone with their families,” she said.

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