A UK Finance spokesperson said: 

Firms recognise the importance of customers not having their accounts closed inappropriately or unfairly, and therefore the decision to close an account is only taken after extensive review. Some of the reasons why a firm may decide to close an account include breaches of terms and conditions; abusive or threatening behaviour; or suspicious activity on the account. In all cases, customers must be treated fairly.

Customers should receive good communication about their accounts and a notice period should be served before an account is closed. However, there may be exceptions to this if, for example, money-laundering is suspected. We look forward to reviewing the full HM Treasury response to consultation when it is published.

Additional info

• Please see our Principles for Exiting a Customer here.
• Please see our response to the Payment Services Regulations Call for Evidence here.
• HM Treasury’s press release