I’ve been debanked by Virgin Money takeover, says Nationwide rebel

Nationwide has closed the accounts of a campaigner who called for members to have a say in the building society’s £2.9bn takeover of Virgin Money.

Mikael Armstrong has collected more than 5,000 signatures demanding a vote on the deal – the sector’s biggest takeover since the 2008 financial crisis.

This will create the UK’s second largest savings and loans group and has already been approved by Virgin Money shareholders.

Armstrong argued that a vote should also be held on Nationwide’s 16 million members, who together own Britain’s largest building society.

But in a surprise twist, the Mail on Sunday has learned that Armstrong’s various accounts with the association were frozen in April, just as his campaign against the deal was in full swing.

“It’s highly unlikely that it’s a coincidence,” he said. “They didn’t give me any reasons or justifications.”

The news of his de-banking comes just 10 days before Nationwide’s annual general meeting (AGM), where directors – including CEO Debbie Crosbie – are up for re-election. Nationwide has made the event online-only, in a move campaigners say is an attempt to stifle dissent. Campaigners also claim some members have been reluctant to voice their opposition to the deal for fear of being de-banked.

Armstrong has been a Nationwide customer for over 25 years, but because he closed his bank account, he has lost his membership status and is unable to attend the AGM.

He argues that voting against all resolutions is ‘the only effective method of protest left for Nationwide members who feel treated with contempt by a mutual association that is supposed to adhere to democratic principles’.

Like other building societies, Nationwide is a mutual, meaning it is owned by millions of members. The Virgin Money deal is awaiting the blessing of the Financial Conduct Authority, the City’s watchdog.

Separately, the FCA will publish its final report on de-banking later this month. The publication, which was delayed until after last week’s general election, will focus on how banks treat PEPs – “politically exposed persons” such as MPs, peers and their families who can be vulnerable to financial crime. It follows the furore over NatWest’s decision to de-bank Reform leader Nigel Farage, which led to the resignation of the bank’s chief executive, Dame Alison Rose. The FCA has said it cannot change the law requiring extra checks on PEPs.

It is examined whether the controls on PEPs are proportionate and appropriate and do not create unnecessary obstacles for civil servants and their families.

Armstrong said Nationwide first took action late last year. In March, before Virgin’s bid was announced, it told him he had three months to move his accounts to another provider.

But on April 19, he received a letter ‘out of the blue’ from the association freezing his accounts and telling him to make ‘alternative arrangements’ for his banking while further checks were carried out.

Nationwide said it could not comment on individual stories.

A spokesperson said: ‘We do not close accounts because someone expresses legitimate opinions. We are not aware of any instance where accounts have been closed purely because of someone’s political comments or opinions.’

The association continues to comply with “its legal and regulatory obligations,” the spokesperson said.

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