"HSBC - the bank he has been with since he was a little kid - had asked him for a list as long as his arm about you know, what's the source of your wealth and what's this, what's that.
"My oldest son is 22 and he was outright refused an account by one of the Challenger banks. It is mad."
Nigel Farage had his account closed by Coutts (Photo: Getty)
Shapps also spoke about his own personal experience and described how one bank ordered him to provide 18 year’s worth of payslips before it would let him become a customer.
He said: “I said how am I meant to get 18 years of payslips? It was since I had started being an MP."
The Welwyn Hatfield MP said that it was a problem faced by politicians and "anyone in public service" including former top civil servants.
He added: “It's anyone in public service. So former permanent secretaries of mine tell me that they have difficulty getting banking.
“Anyone who decides to devote their life to public service is essentially at risk of being penalised by banks.”
The senior minister issued a warning to banking chiefs, after the Government moved swiftly to introduce a number of reforms in the wake of Farage's high-profile campaign against Coutts and parent company NatWest.
Shapps concluded: “They've gone too far with this. They should get on with the job of being good at banking and not trying to second guess society. There are laws, there are politicians, there are courts."
HSBC declined to comment.