Consumers can bank on changes to Banking Code

Changes are to be made to personal business and Banking Codes as the result of an independent review.

The review was followed up by a public consultation which drew out necessary reforms that will give consumers a fairer deal.

Among the reforms will be a step up in the amount of aid given to customers heading into financial trouble, greater clarity in cheque clearance and information on products and greater transparency of information for credit cards and credit card cheques.

Angela Knight, chief executive of the British Bankers’ Association, commented: “The Banking Code is the charter that sets out how customers are treated by their banks and building societies.

“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.”

Meanwhile, Paul Smee, chief executive of APACS, said that the improved transparent for cheque users is “great news” for all consumers but especially for those with basic bank accounts as well as small businesses.

Tags: great news, cheque, apacs, Economy of the United Kingdom, basic bank accounts, public consultation, british bankers association

Banks threaten to close accounts as charge row escalates

Account holders who have complained at seemingly excessive bank charges have been threatened with having their accounts shut down.

A study from This is Money, revealed by the website yesterday, showed that over one in eight of those who have tried to reclaim excessive bank fees have been subjected to the threat.

Extra charging by banks is a hugely controversial subject with British consumers. It was revealed last week that a total of £200 million has been paid back by banks so far this year, as customers assert their rights.

This is Money also claimed at the time that around 500 claims a day were being received at some banks, necessitating extra staff being brought in.

Regarding the latest controversy, chief executive of the Banking Code Standards Board Roger Skinner told the website: “Banks are allowed to close down accounts for commercial reasons. But they must also treat fairly any customers who are experiencing financial difficulties.”

According to the Banking Code, to which the banks in question are signatories, customers must be dealt with fairly when in financial difficulty.

Industry watchdog the Office of Fair Trading (OFT) extended its investigation into bank charges earlier this year. It is slated to report back in the autumn.

Tags: financial difficulty.Industry watchdog, Banking Code, excessive bank charges, latest controversy, fair, staff