The
Banking Code - Savings and Investment
About The Banking Code
The
Banking Code is a voluntary code followed by banks and building
societies in their relations with personal customers in the United
Kingdom. It covers current accounts, personal loans, savings and
credit cards. The Business Banking Code covers small businesses
with a turnover of up to £1 million a year. Mortgages are
regulated under the Mortgage Code by the Mortgage Code Compliance
Board. Investments, pensions and life assurance are regulated by
the Financial Services Authority.
The
Banking Code sets standards of good banking practice, which are
followed as a minimum by banks and building societies subscribing
to it. It allows competition and market forces to operate to encourage
higher standards of banking practice for the benefit of customers.
The
Banking Code was established in 1991 and is now in its sixth edition.
The current edition came into effect on 1 March 2003. It includes
new requirements on interest rate changes, account switching, basic
accounts, credit card statements and branch closures.
The
first Business Banking Code was introduced on 31 March 2002 and
a revised edition became effective on 1 March 2003. Both these Codes
are reviewed every two years. An Independent Reviewer, Prof. Elaine
Kempson, recently steered the process on behalf of the sponsors.
Under the Banking Code and the Business Banking Code, subscribers
promise to meet Key Commitments, which include:
- to
act fairly and reasonably in all dealings
- to
help understand how financial products and services work
- to
deal with things that go wrong quickly and sympathetically
- publicise
this Code, have copies available and make sure that staff are
trained to put it into practice.
In addition to the key commitments, the Codes set out how customers
should be dealt with, in such areas as:
- account
opening
- marketing
of services
- information
on interest rates
- bank
charges
- lending
- confidentiality
- handling
financial difficulty
Copies
of the Banking and Business Banking Codes, including alternative
formats such as Audio, Braille and Large Print, are available from
Banks and Building Societies who subscribe to the Code(s).
Guidance for Banks and Building Societies
The
Guidance for both Codes is intended to clarify what the Codes mean,
and how they should be interpreted. The Guidance is intended primarily
for banks and building societies but is also available to members
of the public.
The
Banking Code
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
