In 1995 Regulations came into force which set out what is fair and unfair in consumer contracts. The FSA, OFT and Which? all have enforcement powers in relation to firms who they believe are not complying with those Regulations and who they consider to have unfair contracts.
The guidance issued by the FSA sets out the regulator’s interpretation of these Regulations. As a result, uncertainty as to what the FSA’s understanding of these very complex rules mean will be reduced.
Going forward, the BSA is eager to continue discussions with the FSA, OFT, Which? and other stakeholders, as it is important that there is agreement on, and a shared understanding of, what this guidance means in practice.
Commenting on the publication, Adrian Coles, Director General of the BSA said: “Building societies are committed to fairness in all their dealings with members and other customers. Indeed, societies have always sought to ensure that their contracts are fair. The sector is encouraged by the publication of guidance which helps societies achieve this objective. Overall we have welcomed the wider and more public debate on Treating Customers Fairly, as societies have nothing to fear from the discussion and much to contribute.”
