Yahoo News Shooting businesses likened to sex work in debanking scandal
Shooting businesses are being treated like sex workers in the debanking scandal, the City regulator has said.
The Financial Conduct Authority (FCA) has said that complaints from both industries about banks shutting their accounts show the “challenges” for such business “that may divide wider opinion”.
But last night campaigners hit back, saying just because a “very small minority of people oppose shooting does not make it a reputational risk”.
It comes after shooting clubs, syndicates and gun shops said that they are being “treated like criminals” by big name banks.
The British Association of Shooting and Conservation (Basc) said that “perfectly legal and respectable businesses” are being targeted and their livelihood is put at risk.
Basc has been supporting its members in campaigning against unfair banking practices for a number of years and their surveys have shown that around a third of shooting businesses have had their accounts closed, while around 65 per cent reported difficulties opening an account.
At least 15 different banks and financial service providers have been accused of treating rural businesses unfairly.
Debanking hit headlines earlier this year when Nigel Farage’s account was closed by Coutts. The backlash led to an investigation by the FCA.
In an interim judgment, the FCA said: “We have received submissions from representatives of the gun trade and sports shooting, and adult entertainment (including sex work). These highlight the challenges, for the members/affiliates of business types or sectors that may divide wider opinion, of obtaining or maintaining a payment account.”
The comparison was not based on the nature of the industries, but the challenges that those businesses were facing, sources told the Telegraph.
A more detailed FCA report, which takes into account submissions from the industry, is expected later this year.
‘Reputational risk’
Dr Conor O’Gorman, the head of policy and campaigns at Basc, said: “The fact that a very small minority of people oppose shooting does not make it a reputational risk. A small minority of people oppose the banking system, that doesn’t mean dealing with banks is a reputational risk to their clients.
“The problem here is banks discriminating against perfectly legal and respectable accounts that have been run for years on a proper basis and that actually damages people and businesses.”
Many businesses have come forward since the debanking scandal hit the headlines, including Mill Farm Clay Pigeon Club in East Sussex, which in January 2023 found themselves one of a number of Barclays customers who had their accounts closed without notice.
Sue Daunt, who runs the once a fortnight clay shoot, told Shooting Times: “Barclays made us feel like criminals and the whole experience of being shut down like that, followed by the difficulty in finding another bank, was something I hope we never have to go through again. An amazing supplier gave us credit while we completed six different business account applications.
“We were so nearly forced to close the business because of what happened. The banks should not be getting away with treating customers with such contempt.”
Rules that state banks should give 90 days notice, a reason for closing an account and fair treatment of their customers are not being followed, Bsca alleges.
Once the accounts have been closed, businesses are struggling to open new accounts. HSBC, for example, has required some shooting clubs to provide their lease or a letter from the landowners and the shotgun or firearms certificate of every single club member.
‘Denying rural communities’
Dr O’Gorman said that “stress and emotional toll” on small rural businesses is “massive”.
“Financial service providers are cancelling the countryside by denying the rural community fair access to banking services,” he added.
“You wouldn’t expect your water electricity or gas to be shut down because of your interest in shooting so why should banks be allowed to get away with politicising fundamental financial services to the taxpayers that not that long ago bailed them out.”
A HSBC spokesman said: “HSBC UK complies with all legal and regulatory requirements. Decisions on customer accounts are always the subject of careful consideration and are never taken due to the legal, political, or personal views of a customer.”
A Barclays spokesman said: “Whilst we cannot comment on individual accounts, we comply with our legal and regulatory obligations. We would only withdraw banking services from an individual or business in exceptional circumstances.
“We support the Government’s initiatives to standardise the approach across banks, including non-exclusion on the basis of political views or beliefs.”
An FCA spokesman said: “Under the law currently, we have a very limited remit concerning businesses’ and not-for-profits’ access to bank and payment accounts.
“As we said in our report, an important question for policymakers is whether all individuals, businesses and organisations should have the right to an account, as is the case in some other countries.”
