BANKING SERVICES CONSUMER CODES REVIEW GROUP

Allington Towers, 19 Allington Street, London, SW1E 5EB

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PN01

18 December 2000

SEVEN KEY QUESTIONS ABOUT BANK SERVICE

Banks, building societies and their customers were today asked seven key questions about consumer choice and satisfaction with banking services, such as current account, credit cards, and personal loans.

The questions are part of a public consultation on the effectiveness of the Banking and Mortgage Codes launched by DeAnne Julius, Chairman of the Banking Services Consumer Codes Review Group.

Dr Julius said :

“Despite long experience with Banking Codes, the Cruickshank Report found that many customers are concerned about the level of service they get from banks and building societies.

“They are confused about what is on offer and they sometimes find complaints are not followed up.

“We need to see whether the voluntary codes are doing enough to help consumers and consider the scope for improvements

“The CRG would be grateful for views on seven key issues concerning the codes:

· is the consultation process of drawing them up satisfactory ?

· do they cover all issues that they should ?

· are they fully complied with by the industry ?

· are they monitored and enforced effectively ?

· do they offer adequate redress for legitimate grievances ?

· could consumers be better informed about what their rights are ?

· do customers need more information or more clearly presented information ?

“The CRG has a wide collective experience of banking services, but we would very much welcome views from banking service users about how the service can be improved. That includes examples of good practice that can be shared as well as the areas where poor standards are found.

“We also welcome the views of the industry itself and other interested parties. We look forward to receiving well argued contributions which will help us to find effective ways to raise standards for users.”

After preliminary considerations, the CRG has established the main issues it needs to focus on, and how it will collect evidence. The CRG plans to hold meetings with key bodies in January and February, and will be organising a seminar for February. It felt that it would also be useful to invite views from the general public and that this should begin as early as possible.

As the Competition Commission is already looking into the supply of banking services by clearing banks to small and medium sized enterprises, the CRG decided to focus predominantly on customer codes for personal retail consumers, although the views of small businesses would also be welcome.

Views on the seven key issues should be sent to :

David Fairbrother
Secretary
Banking Services Consumer Codes Review Group
Allington Towers
19 Allington Street
LONDON SW1E 5EB

email: david.fairbrother@hm-treasury.gov.uk

The deadline for responses is 28 February 2001. Please explain in your reply if you represent an organisation, and if so, its membership and coverage. We very much welcome responses from individuals. Your answer may be made public unless you say you want it kept confidential.

NOTES FOR EDITORS

1. The intention to consult on self-regulatory mechanisms such as the Banking and Mortgage Codes was announced on 4 August by Chancellor of the Exchequer Gordon Brown as part of the Government response to Don Cruickshank’s report “Competition in UK Banking” published on 20 March (Treasury press release 98/00). Don Cruickshank’s report can be found at www.bankreview.org.uk.

2. On 8 November, Economic Secretary Melanie Johnson announced the terms of reference of the Banking Services Consumer Codes Review Group, and that it would be chaired by DeAnne Julius, an external member of the Bank Of England Monetary Policy Committee (Treasury press release 128/00), On 23 November she announced the full membership of the Group (Treasury press release 137/00).

3. The remit of the CRG is to advise on identifiable improvements to self-regulatory codes of practice in the banking and financial services industry. It welcomes the views of users and the general public on how improvements can be achieved, including examples to illustrate such suggestions. The CRG cannot look into individual complaints about allegations of breaches of these codes, which should be addressed to the relevant Ombudsman.

4. Media enquiries should be addressed to Charles Keseru at the Treasury press office on 020 7270 5188.