Banking code

Emma Bandey, personal finance campaigner for Which?, said: "While Which? (formerly the Consumers' Association) continues to support the banking code in providing self-regulation to banks and building societies, there are major problems with consumer credit which today's reforms have failed to address.

"'Transparency and openness' have been much-lauded as the solution to poor customer-bank relations, but they are not the panacea. Improved signposting is welcome, but as long as the products remain flawed, consumers will remain unprotected.

"The main areas for improvement are: cheque clearing - consumers want faster clearing not more awareness; minimum payments on credit cards - these should make inroads into the actual debt and not just cover charges; Credit card cheques - there should be a ban on unsolicited cheques and people should be allowed to opt in, rather than opt out; Interest rate calculation - the code provides no recommendations on the need for standardisation of the way credit card interest is allocated. 

"Standardisation would actually result in people really being able to compare APRs and know how much they'd be paying.

"Today's revamped banking code provided the industry with an opportunity to demonstrate its commitment to its customers but sadly they still seem to be several paces behind when it comes to meeting their needs.

"We'll continue to agitate for either voluntary or statutory regulations to provide this much needed consumer protection."

Stakeholder Response: National Consumer Council