Thousands of Britons living abroad have been left feeling unwelcome as major banks pull the plug on their accounts. One such individual is Surrey native Paul Burton, who had been living in Perth, Australia for nearly two decades with plans to retire back in the UK. However, his dream was shattered when Barclays unexpectedly closed his account in January without any prior notice.
The closure of his account led to a year-long dispute with the bank, causing him to miss crucial buy-to-let mortgage payments on his London property. This resulted in Mr. Burton facing the threat of losing his home in England to repossession. He is just one of many Barclays customers who were effectively “de-banked” as the bank decided to close accounts held by expats.
Mr. Burton, a managing director in the mining industry, had been using his Barclays account to make mortgage payments on his rental property in London. It wasn’t until his payments to the Bank of Scotland, his mortgage lender for two decades, started bouncing that he realized something was amiss. Despite Barclays claiming to have contacted all affected customers before closing their accounts, Mr. Burton insists he received no notification via email, phone, or mail to his Australian address.
The lack of communication from the bank led to three months of mortgage arrears, with Mr. Burton struggling to make payments due to bureaucratic obstacles. He attempted various methods to settle the arrears, including setting up an account with the Bank of Scotland, but was met with roadblocks at every turn. Eventually, the situation escalated to the point where a court date was set for the bank to repossess his property.
The increasing regulations in the banking sector have led to more banks closing international accounts, with Barclays and Lloyds Banking Group being prime examples. Barclays announced the closure of all expat accounts, while Lloyds informed 13,000 expats in Europe that their accounts held in Britain would be shut down.
Despite the challenges he faced, Mr. Burton managed to avoid losing his home by making a substantial payment to the Bank of Scotland from Australia. Both Barclays and Lloyds have defended their actions, citing the need to comply with regulations and the necessity of making commercial decisions.
The experiences of individuals like Paul Burton highlight the difficulties faced by expats when banks decide to close their accounts without adequate communication or alternative solutions. As more banks follow suit in closing international accounts, it is essential for customers to stay informed and proactive in managing their finances while living abroad.