Banking groups operating in the UK have committed to a new code of conduct that is designed to give consumers a higher standard of service.
The code was established by the Financial Services Authority, the Office of Fair Trading and the Treasury after a process of consultation and lending more responsibly is among its stated aims.
Many consumers have seen their debt management problems worsened as a result of lender actions and the charging of fees and it is hoped that the new set of rules will change the way banks deal with financially vulnerable individuals.
Furthermore, the aims of the code include improving credit assessment criteria and making sure that the terms of credit deals are made clearer to consumers.
Angela Knight, the British Bankers’ Association’s chief executive, commented: “This new banking code gives strong commitments that banks will lend responsibly and will help customers who may be heading towards financial difficulties.”
Last week, a report released by Help the Aged and Barclays showed that more and more British consumers are still facing debt management issues as they reach pension age.