Credit cards

Changes to the Banking Code scheduled for publication next month are set to require banks to be more cautious in sending out unsolicited credit card cheques to customers.

Stakeholder Response: Association of Payment and Clearing Services

Elanor Cann, corporate policy manager at APACS, said: "The results of the Banking Code review will be published in November.

 

"The new Banking Code, effective from March 2005, will incorporate APACS best practice guidelines on credit card cheques, which will then become mandatory for all Banking Code subscribers.

 

"The guidelines are available now on the APACS website at www.apacs.org.uk and cover such areas as an opt-out for new and existing customers; assessing a customer’s ability to repay and checking suitability prior to issuing cheques; information on key features such as interest, charges, and restrictions on use and any other relevant terms and conditions, including consumer protections.