New Banking Code promises better customer service

Banks and building societies will be obliged to provide customers with clearer information and better service standards under the revised Banking Code, which comes into force today.

Changes to the code include making basic bank accounts more readily available to people who want one, the inclusion of a summary box on credit card agreements and more notice when the last bank branch in a community closes. Customers will also be provided with more information on how to claim balances on forgotten accounts.

The new package of standards follows a wide-ranging independent review carried out last year by Professor Elaine Kempson of Bristol University, which included consultation with regulators, consumer groups and the industry. The Business Banking Code has also been updated as part of the review process.

Ian Mullen, chief executive of the British Bankers Association (BBA), said: "Banking is a fast-evolving industry and customers are more financially aware than ever before.

"It is essential that they have clear information about the services that banks and building societies offer and have confidence and trust in them.

"The new codes reflect feedback from consumer bodies and regulators as well as the industry itself. This means they will be clearer to follow, easier to understand and provide the information that customers have said they want to see."

Adrian Coles, director general of the Building Societies Association, said: "The new code is good news, as it will allow customers to know what to expect and when to expect it from their bank or building society.

"Clear understandable information is one of the basic ways institutions can treat their members and customers fairly. I welcome the fact that under this revised code people will have the information they need."

Sandra Quinn, communications director at the Association for Payment Clearing Services (Apacs), said: "UK customers have a great range of services and products to choose from and as an industry we are committed to ensuring they have clear and accurate information at their fingertips to enable them to make informed decisions about their finances.

"It is good to see customers getting what they want from the code - transparency about clearing timescales and a whole section on credit cards reflecting their importance to us as customers."