New bank code introduced

Consumers are expected to be entitled to fairer treatment under the terms and conditions of a new banking code, it has been announced.

The new terms stipulate that spenders should contact their bank if they experience financial difficulty in a bid to make sure they work out a practical solution rather than just burying their head in the sand.

Both building societies and banks are also compelled to do more to assist customers who are struggling with debts by contacting those who may have been perceived to have fallen into financial trouble.

Angela Knight, chief executive of the British Bankers’ Association, said that the new code “gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties”

She added that the driver for change was the consultation process which shows what customers want and expect from their bank.

Meanwhile, young consumers are set to benefit from the Young People and Money scheme, set up to provide specialised debt advice.

Tags: bank, Banking Services, practical solution, young consumers, consumers, specialised debt advice, Business Finance