City regulator, the Financial Conduct Authority (FCA), has highlighted the alarming similarity in treatment between shooting businesses and sex workers in the recent debanking controversy. Complaints from both sectors about banks shutting down their accounts shed light on the "challenges" faced by such businesses, which can polarize public opinion.
Campaigners retaliated against this notion, emphasizing that opposition from a "very small minority" does not equate to reputational risk. They argued that shooting clubs, syndicates, and gun shops are unjustly facing scrutiny akin to criminals by major banks.
The British Association of Shooting and Conservation (Basc) voiced concerns, asserting that lawful and reputable businesses are being unfairly targeted, jeopardizing their livelihoods. Basc has been actively supporting its members against biased banking practices, revealing that a significant portion of shooting businesses had their accounts closed, while many faced obstacles in opening new ones.
At least 15 banks and financial service providers have faced accusations of discrimination against rural businesses. The issue gained attention after Nigel Farage's account closure by Coutts earlier this year prompted an FCA investigation.
The FCA's initial assessment acknowledged the challenges for businesses in controversial sectors to secure or maintain payment accounts, drawing comparisons between industries based on the difficulties they encounter rather than the nature of their work.
Dr. Conor O'Gorman from Basc emphasized that opposition to an industry doesn't automatically make it a reputational risk. He highlighted the discriminatory actions of banks against legitimate and long-standing accounts, causing significant harm to businesses and individuals.
Numerous affected businesses, such as Mill Farm Clay Pigeon Club in East Sussex, recounted their distressing experiences after abrupt account closures. They described feeling unfairly treated by banks and struggling to find alternatives.
Basc accused banks of disregarding regulations mandating proper notice, justification, and fair treatment when closing accounts. Moreover, banks' stringent requirements for new accounts, such as demanding leases and individual firearms certificates from club members, exacerbate the challenges faced by these businesses.
Dr. O'Gorman emphasized the profound emotional toll on rural businesses due to this unfair treatment, accusing financial providers of denying essential banking services to rural communities. He criticized the banks' politicization of financial services, contrasting it with utilities that aren't shut down based on individuals' interests.
HSBC and Barclays defended their actions, asserting compliance with legal obligations and a case-by-case consideration for account closures. They supported government efforts to standardize banking practices but did not address specific cases.
The FCA spokesperson highlighted their limited authority in ensuring fair access to bank accounts for businesses and nonprofits, posing a critical question for policymakers about granting equal rights to all entities for banking services, as seen in some other countries.