The Codes, which set the standards of good banking practice within the UK, will be reviewed, with comment taken from all interested stakeholders and individuals. Covering bank and savings accounts, personal loans and overdrafts, card products and payment provisions, including foreign exchange services, the review will run from 13 November, with submissions to the study permitted until February 2007.
Mike Young, an independent consultant, has been given the task of heading the review. He admitted that he would be considering the views of stakeholders, consumers, regulators and government, in addition to banks and building societies, as part of his study.
Commenting on the forthcoming review, Ian Mullen, chief executive of the British Bankers’ Association (BBA), said: “The Banking and Business Banking Codes continue to be the benchmark in setting standards of good practice for banks and building societies to follow in the UK. The banking industry is committed to ensuring that the Codes are independently reviewed every three years so they continue to be relevant for customers and reflect developments in the banking environment.”
Paul Smee, chief executive of APACS, added: “The review of the Codes is integral to their continuing role of providing a transparent and agreed level of service that customers should expect from their banks and building societies. This is an opportunity to revisit the current content of the Codes to ensure that they provide adequate and appropriate protection for consumers and businesses.”
Peter O’Donovan, mortgage manager at Bestinvest, urged the review to clamp down on credit and store card charges. He said: “It has been reported that there has been a avalanche of debt. People used to hide from it, but are now facing up to their financial problems. Credit and store card charges are a rip off. ”
