Banks have been warned they cannot close accounts because they disagree with the political views of the customer.
A row blew up last week when a local vicar claimed Yorkshire Building Society had shut his accounts after comments he made about the society’s support of Pride month.
Brexiteer Nigel Farage also claimed his account with the building society had been closed.
Jeremey Hunt, the Chancellor, is reportedly “deeply concerned” and has asked City Minister Andrew Griffith to look into the reports.
A probe is already underway into PayPal reportedly blocking accounts of "free speech" groups with the findings expected to be released within a few weeks.
Treasury sources told the Telegraph: “It is absolutely a concern. No one should have their bank account denied on the grounds of freedom of expression. We expect to take action on this issue within weeks.”
At present, banks should give customers at least 30 days' notice if an account is to be closed, but in "exceptional cases" this can be reduced.
If it becomes clear that banks are closing down accounts for other than financial reasons these rules might be tightened, according to the Treasury source.
When it launched the PayPal review, the Treasury said: “The government is very clear that regulations must respect the balance of rights between users and service providers’ obligations, including in relation to protecting the freedom of expression of anyone expressing lawful views.
“As a minimum, it is the government’s view that, without deviation, a notice period and fair and open communication with a customer must apply in situations which relate to termination on grounds other than suspected or actual criminal offences or when otherwise allowed by law.”
Yorkshire Building Society denied it had closed the vicar’s account due to a difference of opinion or belief.
Accounts are only closed if a customer is “rude, abusive, violent or discriminates in any way”, it said.