The revamped Banking Code launched earlier this month contains enhanced promises by banks and building societies to treat customers fairly and reasonably.
In the current financial climate even greater focus has been thrust upon the behaviour of financial services providers; with consumer protection through responsible lending coming under particularly heavy scrutiny.
In a move to further safeguard consumers a new Banking Code was introduced at the end of March. The new code contains enhanced promises by banks and building societies to treat customers fairly and reasonably.
The move to update the existing code came after consultation with consumer groups, the FSA, the Office of Fair Trading and HM Treasury.
As well as the enhanced promise of fairness, more help will be provided to customers experiencing financial difficulties.
To help lenders make responsible decisions, strengthened credit assessment practices will be put in place and consumers will be given clearer information about products, including pre-sale summary boxes for unsecured loans and savings accounts.
Angela Knight, Chief Executive of the British Bankers' Association, said: "This new Banking Code gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties. 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."
So what does this mean to you?
These changes are designed to bring the banking code further into line with the FSA's principle based approach to regulation; ultimately leading to a reduction in the compliance issues you may have experienced in the past.
By gaining the banks' and building societies' commitment to give greater focus on helping customers who may be experiencing or heading towards financial difficulties, it widens the scope for you to work with lenders to find the right financial solutions to meet your clients' individual needs.
Simply access the full 2008 Banking Code (PDF) or contact your Account Manager.
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