From the 1st November 2009 the Banking Code is replaced by The Lending Code
10 June 2010
From 1st November 2009 the Banking code is replaced by The Lending Code. This has been issued by The Lending Standards Board, an independent body which looks after the interests of customers by monitoring the actions of lenders.
The Lending Code outlines good practice relating to unsecured loans, credit cards, charge cards and overdrafts.
Below is an extract from the Lending Code’s press release;
The Code covers the credit and debit elements of the old banking code, other parts of which will be covered through the introduction of the Financial Services Authority regulation of deposit taking.
The new Lending Code includes rules which apply to:
1. Credit assessment and the use of Credit Reference Agencies
2. The risk based pricing principles for credit cards
3. Financial difficulties and debt collection
4. Helping customers in debt who have a mental health condition
Most banks & building Societies subscribe to The Lending code and it is co-sponsored by the British Bankers Association, The Building Society Association and The UK Card Association.
Here is a link to the Lending Standards Board to view a PDF of the code
http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf
