Revised banking code stresses treating customers fairly

The code that regulates UK banks and building societies has been re-launched with a new emphasis on treating customers fairly.

Some of the Financial Service Authority's principles on treating customers fairly have been adopted in the revised code, partly shown in a ban on closing accounts as a result of customers making a valid complaint, for example.

This was a bugbear for consumers who complained about bank charges, only to find they had been frozen out of their current accounts.

Key points in the revised code include:

● A commitment to lend responsibly with beefed up credit assessments;

● Banks will have to provide clear information on products, including credit cards;

● Pre-sale summary boxes for savings accounts and unsecured loans;

● Customers heading towards financial difficulties will be warned, and treated ‘sympathetically and positively’;

● Information on finding dormant bank accounts.

The Banking Code Standards Board, which led the revision, said it aimed in the future to bring the code more in line with the FSA’s principles-based regulatory approach.