HM Treasury News Release

147/98                                   14 September 1998
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                      GOOD NEWS FOR SAVERS
                                
      Patricia Hewitt Welcomes Changes to the Banking Code
                                
Better information for savers about changes to savings
accounts has been welcomed by the Economic Secretary Patricia
Hewitt.

The welcome follows an announcement by the British Bankers'
Association (BBA) and the Building Societies Association (BSA)
that there will be changes to the Banking Code which will
ensure customers get proper information on changes affecting
savings accounts.

The main changes include:

     a guarantee of 30 days notice of changes in terms and
     conditions and a 60 day waiver of notice for customers
     who do not like the changes;

     a 14 day cooling off period when customers open new
     savings accounts;

     better written information for people with postal or
     telephone based accounts;

     an annual written summary of all available accounts, for
     all customers; and

     an end to obsolete and superseded accounts.

Welcoming the changes, Ms Hewitt said:

     "This is really good news for savers. It is only right
     and proper that customers have full and up to date
     information on the terms and conditions of their
     accounts. 

     "We want to ensure that customers are provided with clear
     and accurate information so they have confidence in the
     decisions they take when dealing with their bank or
     building society.

     


"I welcome in particular the new rules on periods of notice,
the introduction of cooling-off periods, and the abolition of
obsolete and superseded accounts."





NOTES TO EDITORS

1.   On 7 May 1998, following a meeting with David Davis MP,
     the former Economic Secretary Helen Liddell asked
     Treasury officials to investigate press reports that
     banks were not dealing fairly with customers over changes
     to interest-bearing accounts.
 Subsequently, Mrs Liddell
asked the industry to tighten up the Banking Code.

2.   The BBA and BSA have now agreed the following changes to
     the Banking Code:

     better information to customers on how they will be
     informed of interest changes;

     a 14 day cooling off period when customers sign up to a
     new account;
 
     a guaranteed 30 days notice for changes in account terms
     and conditions;

     a 60 day waiver of notice, if customers do not like the
     changes to their account conditions;

     clear messages on interest changes to all customers,
     including written notices to those with postal and
     telephone accounts; 

     an annual summery of all accounts offered, for all
     customers; and

     abolition of superseded and obsolete accounts.

3.   Further details of the changes to the Code can be
     obtained from the BBA on 0171 216 8989.

4.   If you have access to the Internet you can find the news
     release and other Treasury information at http://www.hm-
     treasury.gov.uk.

# = pounds sterling