The new Banking Code and Business Banking Code contain an enhanced promise by banks and building societies to treat customers fairly and reasonably. That promise is supported by eight key commitments and the standards of the revised Code.
The new Codes take effect today following an independent review. Changes to the codes were made after consultation with consumer groups, HM Treasury, the Financial Services Authority, the Office of Fair Trading and other interested parties.
As well as the enhanced promise of fairness, further key improvements to the Banking Code include:
* a new commitment on responsible lending;
* more help for customers who may be heading towards financial difficulties;
* strengthened credit assessment practices to enhance responsible lending;
* clearer information about products, including pre-sale summary boxes for unsecured loans and savings accounts;
* prohibition of account closure as a result of a customer making a valid complaint;
* information on how to find your lost account (dormant account);
* greater clarity of cheque clearance times; and
* clearer information about credit cards and credit card cheques.
See full Press Release.
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