31-03-2008
New Banking Code enters into force
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
A new voluntary Banking Code has entered into force.
Under the terms of the latest version of the code, while in the past the burden of responsibility had been for customers to contact their bank or building society if they found themselves in financial difficulty, the reverse is now the case.
Other elements of the new code also call upon banks to provide assistance to those looking to change provider.
"This new Banking Code gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties," said Angela Knight, chief executive of the British Bankers' Association.
"The long consultation process, now complete, has shown clearly what customers want and expect from their banks."
A further requirement of the code calls upon banks to inform customers of the alternative to chip-and-pin technology, in circumstances where customers are unable to use such cards.
The chip-and-pin secure payment system makes use of the EMV standard.