banking code standards board reviews compliance of section 14 - financial difficulty

[Amethyst]

very interesting review of how banks and firms have complied (or not) with the guidance set out in the banking code which should be followed by subscribers to the code.

The findings are very damning and do show that BCOBS needs strengthening in that area but that moving over to regulation is a much needed strategy to forcing firms to treat customers in financial difficulty fairly.

• We work closely with debt advice organisations and consider their role to be critical in providing customers unable to pay their debts with good quality and impartial advice. The Common Financial Statement is in almost universal use and it has been extremely effective in enabling debtors, creditors and advisers to work together to agree repayment programmes. There was evidence that one lender refused to consider accepting nominal repayments from customers who had chosen not to use independent advice. It is incumbent upon subscribers to try to assist customers irrespective of whether they represent themselves or otherwise.

[natweststaffmember]

Re: banking code standards board reviews compliance of section 14 - financial difficu

The report is quite critical of the much heralded 30 days grace if you see a debt advisor. To quote:

·The UK Cards Association introduced new breathing space requirements for credit card issuers in November 2008. When debtors who are co-operating with the card company and are seeking help from fee-free advisers, they should be allowed 30 days without specific collections activity and where it is evident that discussions are continuing, consideration should be given to extending that breathing space for a further 30 days. In most cases the initial 30 days was allowed but in no cases did we see the period extended. We have already agreed to provide input to The UK Cards Association as they continue to develop this facility. We regard the breathing space provisions as an important aid to supporting customers in financial difficulties and we will monitor developments in this area.

If you can read the report part 1 and 3 are very very interesting and does kinda follow what a lot of consumers have said.


"As in our last review we found cases where interest and charges concessions were withdrawn, apparently arbitrarily despite no change in the customer’s circumstances. We propose to discuss with the Code sponsors ways of ensuring greater consistency and transparency of approach by subscribers to ensure that customers are always treated sympathetically and positively and that changes made reflect their own circumstances"