Ian Mullen, chief executive of the BBA, said: "Our members work hard to treat customers fairly. The banking industry is highly competitive and banks want to retain their existing customers as well as attract new ones.
"The current independent review of the Banking Code which has involved a great deal of consultation with consumer groups and others is a scrupulously impartial exercise which will, as in previous reviews, bring new benefits for customers without the need for legislation. We are pleased that the FSA refers to the Banking Code and its successes.
"Much of the work of the FSA and the comments it makes in its press release relate to isolated product sales. In practice, many bank products are sold in the context of a long relationship, based around their current account, and pass through several life stages for individual customers.
"Complaint handling is specifically targeted by the FSA. We have seen the successful creation of standard routines which can culminate in an appeal to Financial Ombudsman Service where appropriate.
"Naturally, we shall be discussing the issues raised in today’s report both with our members and with the FSA when we have had the opportunity to examine the report in more detail."
