According to The Telegraph, the UK's largest banks have secretly added the authority to monitor clients' social media accounts to their privacy rules.

The fine print has been hidden in privacy rules and includes the possibility of obtaining information from social media accounts. 

Banks are under increasing pressure to divulge what checks they conduct on clients after former Ukip leader Nigel Farage learned that the private bank Coutts canceled his accounts because his opinions "do not align with our values."

Farage's Twitter postings were included in a dossier created against him. He is also demanding an apology from the BBC,  which incorrectly stated that his account had been terminated for commercial reasons.

Private bank and wealth manager Coutts, a UK-based bank that is also used by the British royal family, has on Friday sent an apology to Brexit champion Nigel Farage after he claimed they closed both his personal and business accounts over beliefs that do not "align" with the bank's ones.

Read more: UK banks refuse to deal with defense firms citing ethical investment

The Telegraph revealed that the Treasury is investigating three more banks, Metro Bank, Yorkshire Building Society, and American Express over accusations that accounts were canceled due to clients' political beliefs.

The political group Reform UK and the Brexit Party are said to have encountered issues with their Metro Bank accounts. Yorkshire Building Society recently canceled Reverend Richard Fothergill's account days after he complained to the bank over their Pride month marketing. The Reform UK head, Richard Tice, also told The Telegraph that his American Express account was suspended for many weeks earlier this year.

Natwest, the parent firm of Coutts and which is 39 percent owned by the taxpayer, did not respond to inquiries about whether it frequently monitors clients' social media.

Lloyds Banking Group, which owns Halifax and Bank of Scotland, admits in small print that it collects information from "published media and social networks" without discussing account closures.

HSBC also did not deny the monitoring of its client's social pages. In its 28-page privacy notice that it may monitor information “that relates to your social interactions, such as your communications via social media, between individuals, organizations, prospects."

Related News

Facebook restricting Palestinian news outlets post-October 7: BBC

Australia bans children from social media, setting first

Barclays admitted that in some circumstances, “we collect information about you, such as from your actions on our social media pages or through the social media” when explaining what data it holds.

When questioned, Nationwide stated that it "does not actively or monitor social media profiles”, but writes online that “in certain situations, we may use information that you’ve made public such as tweets or social media content too."

Santander also claimed that while it does not monitor customers' social media it does check public information. Virgin Money claimed that it only examines social media accounts when it is related to a complaint.

Actions of banks 'disturbing'

Metro Bank stated that it will “occasionally obtain [information] from publicly available sources, such as social media sites."

Refinitv, which controls the World-Check Risk Intelligence database that banks use to check for red flags on prospective customers involve in terrorism, criminality, or political exposure, also checks social media, claiming that it is for biographical information only, not risk indicators. 

The banking industry organization, UK Finance, has revealed that lenders might conduct background checks on consumers using social media.

According to a source, banks "also got more obligations to monitor their customer activity than many other businesses as they’re in the regulated sector.”

According to Farage, "The banks are out of control and need to be brought to heel. People will be horrified by this.”

MP for Dartford Gareth Johnson called the actions of the banks "disturbing", adding that "too often the banking sector seems to have lost its way recently which should worry us all.”

NatWest said, “It is not our policy to exit a customer on the basis of legally held political and personal views. Decisions to close an account are not taken lightly and involve a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements.”

Barclays said it complies with legal and regulatory obligations and would only withdraw services “in exceptional circumstances."

A Metro Bank spokesperson said, “It is not our policy to close or refuse an account due to the political or personal beliefs of an individual or organization.”