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: apacs, Banking Code, basic bank accounts, public consultation, british bankers association, cheque, Economy of the United Kingdom

PPI market faces scrutiny

The Office of Fair Trading (OFT) has decided to refer the UK payment protection insurance (PPI) market to the Competition Commission (CC).

A public consultation was held following an original proposition by the OFT for the referral back in October.

Businesses, consumer organisations and trade associations were asked to give their views on the market and the responses confirmed the OFT’s prior concerns.

“Our examination of the evidence presented to date gives us reasonable grounds to suspect that there are features of this market which restrict competition to the detriment of consumers,” said John Fingleton, chief executive of the OFT.

“Despite some evidence of a degree of consumer satisfaction with aspects of the product, the evidence as a whole suggests consumers get a poor deal.”

The organisation says that the CC can now carry out a thorough investigation of the market, offering the chance for a solution to be reached.

The Financial Services Authority is currently working to remedy some of the problems present in the market in terms of selling practices. However, the OFT feels that this alone will not fix the current problems.

Those of you considering a loan may find that you are better off getting PPI, but should shop around for the best deal.

Tags: commission, evidence, trading, public consultation, detriment, United Kingdom