In response to today's publication of the latest changes to the Banking Code, John Howard, Chairman of the Financial Services Consumer Panel said:

"We welcome the commitment to consider incorporating an overarching principle of fairness in the Banking Code. It is extraordinary that banks are not required to operate like this now, and we look forward to swift progress in this area. We also welcome the commitment to lend responsibly, and the more detailed explanation of how subscribers to the Code will treat customers in financial hardship over bank charges. However, there are still many areas where the Code could go further – we note the independent reviewer has said his reforms have been accepted 'in one form or another', but we believe that some of those 'forms' are not sufficient.

"This again leads us to conclude that the FSA is standing too far back and that it should apply conduct of business regulation to retail banking . This is too crucial an area for consumers to rely on a voluntary Banking Code. The Consumer Panel believes, for instance, that if the FSA had already applied the principle of Treating Customers Fairly, the issue of unauthorised overdraft bank charges could well have been dealt with much earlier. "

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