Banks to help claimants

The banking industry will pledge today to do more to offer basic accounts aimed at people on social security.

The promise, to be made in a review of the banking code, follows months of discussions with the Treasury about ways to speed up the introduction of accounts into which benefit cheques can be paid.

It remains to be seen whether the banks have done enough to head off a threat by the Treasury to introduce targets for the major banking groups on the number of basic accounts they must open.

Jill Johnstone, the National Consumer Council's policy director, was pleased the banks were offering to do more. But she said: "Giving people a basic bank account at their request only is not likely to increase take-up significantly. We want to see the banking industry promoting these accounts much more actively."

The move is one of several changes being made to the industry's voluntary code of good practice, which was first published in 1992 and is designed to ensure that customers are treated fairly.

Others changes to be introduced next March following an independent review include:

· The introduction of "health warnings" on credit-card statements where customers are making only the minimum repayment.

· "Summary boxes" outlining interest rates and other charges to be included on credit-card agreements.

· New commitments to customers if branches close or services are reduced.

· Clearer information for customers on how to claim money lying in "dormant" accounts.

· Greater transparency over the time it takes for electronic payments to be processed.

Ian Mullen, chief executive of the British Bankers' Association, said: "Customers rightly expect the highest levels of service and professionalism from their financial services provider. They want transparency and openness, too."