A new Banking Code has now come into play that will result in banks having to take more actions to help those that are struggling with their debts and finances, as well as requiring banks to take other types of action to help customers.
The new Banking Code applies to building societies as well as banks, and means that consumers could enjoy greater levels of assistance and help from their banks.
The voluntary Banking Code will benefit consumers in a number of ways. Banks will have to adhere to more responsible lending regulations, offer advice on fraud prevention, identify those heading towards problem debt levels and contact them, help customers that want to switch their current account to another provider, and offer more information to customers about cheque clearance times. There are a number of other requirements in the new code.
One official from the British Banker’s Association stated: “This new Banking Code gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties. People do panic when their money starts to go wrong; if they leave it alone it just gets worse. The long consultation process, now complete, has shown clearly what customers want and expect from their banks. That has been the driver for these changes.”
However, some officials, such as those from the consumer campaign group Which? stated that more needed to have been incorporated into the new Banking Code, such as increased minimum repayment limits on credit cards to get consumers out of debt faster.
One official from the consumer campaign group stated: “A lot more could have been done to really benefit consumers.”
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