New banking code agreed
Following consumer dis-satisfaction about the way they are treated by their banks, a new banking code has been implemented as of 31st March 2008.The new code should see a more transparent, sympathetic and positive approach to their customers and will tighten up on lending procedures by checking peoples income, expenditure and credit history in greater detail to ensure they can afford the credit repayments.
Banks and building societies must also display clearer information about products, including summary boxes for unsecured loans and savings accounts. They must also stop the practice of closing their customers accounts when they make a valid complaint, a practice slammed by the Financial Ombudsmen last year.
The British Bankers' Association said the code, which was drawn up after consultation with the Government and consumer groups, gave "strong commitments" that banks would lend responsibly and help vulnerable customers.
