I've been debanked over Virgin Money takeover, says Nationwide rebel
- Mikael Armstrong has mustered more than 5000 signatures demanding a vote
- Armstrong's various accounts with the society were frozen in April
- Move happened just as his campaign against the deal was getting into full swing
Under fire: Nationwide chief executive Debbie Crosbie
Nationwide has closed the accounts of a campaigner who has led calls to give members a say in the building society's £2.9 billion takeover of Virgin Money.
Mikael Armstrong has mustered more than 5000 signatures demanding a vote on the deal – the largest takeover in the sector since the 2008 financial crisis.
It would create Britain's second largest savings and loans group and has already been approved by Virgin Money's shareholders.
Armstrong argued that Nationwide's 16 million members, who own Britain's largest building society, should also be balloted.
But in a surprise twist, the Mail on Sunday has learned that Armstrong's various accounts with the society were frozen in April – just as his campaign against the deal was getting into full swing.
'It's highly unlikely to be a coincidence,' he said. 'They gave me no reasons or justifications.'
News of his 'de-banking' comes just ten days before Nationwide's annual general meeting (AGM) where directors – including chief executive Debbie Crosbie – are up for re-election. Nationwide has made the event online-only, which campaigners believe is a bid to stifle dissent.
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Campaigners also argue that 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 more than 25 years but his de-banking means he has lost his membership status and cannot attend the AGM.
He argues that voting against all resolutions 'is the only effective method of protest left open to Nationwide members who feel treated with contempt by a mutual society that is supposed to adhere to democratic principles'.
In common with other building societies, Nationwide is a mutual, which means it is owned by its millions of members.
The Virgin Money deal still awaits the blessing of the Financial Conduct Authority, the City watchdog.
Separately, the FCA is due to publish its final report into de-banking later this month.
Its 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 may 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 that requires extra checks on PEPs.
But it is looking at whether check on PEPs are proportionate, appropriate and do not create unnecessary barriers for public servants and their families.
Armstrong said Nationwide first began its action late last year. In March, before the Virgin 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 from the society 'out of the blue' freezing his accounts and ordering him to 'make other arrangements' for his banking while further checks were carried out.
Nationwide said it was unable to discuss individual accounts.
A spokesman said: 'We do not close accounts due to someone expressing lawful opinions. We are unaware of any occasion where accounts were closed purely because of someone's political comments or opinions.'
The society continued to meet 'its legal and regulatory obligations', the spokesman added.
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