Banking Code could have gone further, says Which?

As the revised Banking Code is published, Vera Cottrell, principal policy adviser, Which?, says:

“A lot more could have been done to really benefit consumers, such as increasing minimum repayments on credit cards and stopping companies from sending unsolicited credit card cheques to their customers.

“It is encouraging to see new measures such as summary boxes on loan and credit card statements, which will help people to better understand the real cost of their borrowing.  Even so, a great opportunity has been missed to do more to protect consumers at a time when so many people are struggling with their finances.

"Which? has called for an overarching principle of fairness to be included in the Code and we will judge the Code’s effectiveness on whether this is achieved. We want this to go further than the rules already in place - to be effective the new principle of fairness will have to add value to the Code and not simply be window dressing."

-Ends-

Notes to Editor

Which? welcomes the following new measures:

> More data sharing between companies.
> Subscribers will no longer close accounts, or threaten to do so, following complaints.
> Better high-lighting of the option to pay by direct debit for credit card balances.
> A greater commitment to help those in financial difficulties.

Which? is disappointed that the following measures are not being introduced:

> Notification of the end of temporary bonus rates which were offered for more than three months.
> Increased levels of minimum repayments on credit cards.
> The use of inquiry searches for risk-based priced products.
> ‘Opt in’ for credit card cheques.
> Immediate introduction of annual summary statements for current accounts as proposed for Northern Ireland by the Competition Commission.

Which? is the leading independent consumer champion in the UK, providing up to date, impartial, expert information on thousands of products and services to help make individuals as powerful as the organisations they have to deal with in their daily lives. To find out more visit www.which.co.uk