Monday 31st March 2008
The British Bankers Association (BBA) has announced the official introduction of the 2008 Banking Code.
Consumers who open accounts with financial institutions which sign up to the voluntary code are protected by its terms.
March 31st marks the official launch of the new edition, which has been revised after an industry-wide consultation period.
Changes made include more clarity regarding cheques - in the form of greater information about clearing times and credit card cheques.
The BBA adds that Britons with lost or dormant accounts can expect more guidance on how to reclaim their funds.
Anyone facing account closure may also prevent such an occurrence by making a valid complaint against their provider.
However, it is arguably the issue of loans which receives the greatest attention in the updates.
The BBA explains that a commitment to responsible lending has been made, requiring more in-depth assessment of the customers ability to meet repayments.
Anyone who encounters difficulty in doing so may expect more help than was previously the case.
Finally, anyone arranging a credit card or unsecured loan should be given paperwork with a summary of the key terms at the top.
Angela Knight, chief executive of the BBA, says: "This new Banking Code gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties."
Not all elements of the code are to be introduced with immediate effect, as the BBA notes in the Banking Code pamphlet itself.
From May, a faster payment processing service is to be accessible to some banks and building societies, allowing electronic funds transfers to be carried out more quickly.
The BBA adds that the need for a summary box to be included in paperwork for unsecured loans and savings accounts is not to be enforced until October.
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