Banking Code

From Consumer Wiki

The Banking Code

Personal Current Accounts

The current Personal Banking Code which dates from March 2008 is here

The current Banking Code Guidance for Subscribers (Banks) is here

Business Banking Codes

The current Business Banking Code which dates from March 2008 is here

The current Business Banking Code Guidance for Subscribers (Banks) is here

New Banking Code ensures fair deal to customers


Bank and building society customers will benefit from changes to be introduced following a wide ranging independent review of the Banking and Business Banking Codes.

The sponsors of the Banking Codes (the British Bankers' Association, the Building Societies Association and APACS - the UK payments association) have today announced the changes that will be made to the personal and business Banking Codes from March 2008 following a public consultation and review by independent reviewer Mike Young.

The independent reviewer received 50 submissions to the review and a large majority of the recommendations that he made are accepted and will be included in the new codes. Among the new measures being adopted are:-

More help for customers who may be heading towards financial difficulties

Greater clarity of information on products, including pre-sale summary boxes for unsecured loans and savings accounts

Prohibition of account closure solely because a customer has made a valid complaint

Strengthened credit assessment practices to enhance responsible lending

Information on the forthcoming unclaimed assets (dormant accounts) schemes

Greater certainty in cheque clearance

Greater transparency of information for credit cards and credit card cheques.

Mike Young said: "I am very grateful to everyone who sent in submissions and to those who answered my subsequent requests for information. The review involved comprehensive consultation with key stakeholders and I am pleased that most of my recommendations have been accepted, in one form or another."

Angela Knight, chief executive of the British Bankers' Association said: "The Banking Code is the charter that sets out how customers are treated by their banks and building societies. It is there to ensure that everyone - both customers and financial providers - know what they have to do and where their responsibilities lie. These revisions to the Code reflect the need to keep up with a changing world. It will continue to underpin the treatment and protection customers value and have every right to expect."

Adrian Coles, director general of the Building Societies Association said: "In its 15-year existence, the Banking Code has been updated to reflect changes in consumers' needs and in retail banking practice. The beauty of a voluntary Code, and the independent review that we have recently undertaken, is its flexibility - it can be updated to ensure consumers are protected quickly and effectively. The Code continues to set out what consumers can expect from their bank or building society and how they will be treated - it remains both valuable and timely."

Paul Smee, chief executive of APACS said: "This new Code will deliver greater certainty and transparency for cheque users. Changes to cheque clearing mean increased transparency and that for the first time customers can be sure that six days after paying in a cheque the money is definitely theirs. This is great news for all customers but particularly for small businesses and those who have basic bank accounts."