The new Banking Codes has gone as far as to outline a raft of positive changes though. It will now see consumers benefitting from a greater clarity of information on products, strengthened credit assessment practices, greater transparency of information and more aid for customers heading for financial difficulties.
They will also see banks and buiilding societies prohibited from closing a customer's account solely because said customer has made a valid complaint - as was seen happening with many who opted to reclaim the charges made by their account provider.
However, whilst John Howard, chairman of the FSCP said he welcomed the commitment showed by this review, he said that there were many areas in which the Code could go further.
"We note the independent reviewer has said his reforms have been accepted 'in one form or another', but we believe that some of those 'forms' are not sufficient," he said. "This again leads us to conclude that the FSA is standing too far back and that it should apply conduct of business regulation to retail banking.
"This is too crucial an area for consumers to rely on a voluntary Banking Code. The Consumer Panel believes, for instance, that if the FSA had already applied the principle of Treating Customers Fairly, the issue of unauthorised overdraft bank charges could well have been dealt with much earlier."
