Posts Tagged ‘British Bankers Association’

New Lending Code 1: Lending, Debt and the Vulnerable

November 5, 2009

At the end of section 9, Financial Difficulties, there are eleven paragraphs headed ‘Debt and mental health’.

Inclusion of this is a huge departure from the previous section 14 of the Banking Code [most of which is now wrapped up in the FSA BCOBS]. It is about time this recognition of the vulnerable started, since the Treasury Select Committee was urging it in 2005 and the Money Advice Trust [a charity supported by the industry] in 2007, the two previous reviews of the code.

As the Lending Code includes guidance on treatment of micro enterprises this applies to these as well as personal customers. Fortunately the right of customers to represent themselves is not challenged here. As with debtors we have indeed moved a long way in understanding since the nineteenth century.

While this in no way puts the MAT or Treasury advice as part of the code, there is an instruction to British Banking Association members to take note of the guidelines published by MAT on behalf of the Money Advice Liaison Group, which is a forum with representatives from all parts of the finance industry, charities and government sections concerned.

While the more negative admission that the Lending Standards Board [new name for the Banking Code Standards Board] will neither monitor nor enforce them, the expectation of observance is clear and of value.

This is excellent news for vulnerable debtors, the mental health charities, the advisors and plain common sense.

Still a-ways to go for the full laying out of how to treat all vulnerable customers, but a welcome and cheering start. Such understanding bodes well for all debtors and all borrowers; perhaps paradoxically for all creditors as well.

Joseph Harris, Debt Control Man
Author: Control Your Debt Crisis on Your Own Terms
http://www.controlyourdebtcrisis.co.uk

Lending Code Arrogance

November 2, 2009

Since I wrote on this three weeks ago I have been trying to find the text of the new code. Only today have I managed to get hold of it, and it came into effect yesterday.

While my criticisms of Paul Ross, Retail Banking director of the British Bankers Association, still stand, I am happy to thank him for his prompt response today with the inclusion of the link. I needed that since the normal searches revealed nothing.

Click here for the pdf. But don’t expect it to be that easy! Clicking for the pdf here takes you to this link where the pdf link does get the actual document. To me this run-around is a further sign of the arrogance I now see as normal.

This means that no attempt has been made to make the new text, or its new wrapper, easy to find. Yet the actual text and the changes may have massive impact for debtors [as it may do for all who deal with the banks and financial institutions for credit services].

The contempt shown for debtors, for consumers and for their advisors matches the experience of dealing with the worst of the banks.

I will post a series of blogs describing the terms in the new document. At first glance they look like the old with new numbering. But putting effort into a comparison would delay the presentation to you and it might in any case be a good idea to remind ourselves of the obligations on bankers under this new version of parts of the old Banking Code.

My next blog will however be a further attempt to self-therapy to deal with the anger I feel over the run-around. I will speak of Members of Parliament.

Joseph Harris

Lending Code secrecy ‘is a disgrace’

October 12, 2009

I have just released this press release; as you see it is a matter of some seriousness

The new Lending Code, which replaces the credit and financial difficulties sections of the defunct Banking Code, is due to come into effect on November 1. Some nineteen short days away.

There is to be no public sight of these changes, nor any consultation process before these changes come into effect.

Specialist author Joseph Harris – Debt Control Man – has been trying to get sight of these changes since June. He has been told they will not be released until they are in effect on November 1 by Paul Ross, the man who is writing the new document for the British Bankers Association, in an email.

“This is a clear case of dictatorial behaviour,” declares Mr Harris. “It is a disgrace that no one concerned with the field, nor any debtor – whether defaulting or not – has any idea how the changes will affect them.

“Vince Cable was wrong when he said Gordon Brown had changed from Stalin to Mr Bean. On the basis of this secrecy and undemocratic behaviour he remains Stalin.”

Phone calls and emails to the FSA and the OFT result in classic Civil Service dropping the query into the new virtual filing bin.

“Even though there are many rules to help debtors negotiate the treacherous waters of finding the best way for their needs, too many creditors and debt collectors – including the biggest companies – do their best to sidestep them.

“Lack of a clear knowledge of what is happening among debtors and their advisors leaves these worst companies a window of opportunity to harass and bully particularly the poorest and most vulnerable debtors,” adds Mr Harris, author of Control Your Debt Crisis on Your Own Terms http://www.controlyourdebtcrisis.co.uk/book-cydc/cydc_Book_intro.shtml .,

“It is also a tragedy that the opportunity to include the requests of the Treasury Select Committee in 2005 and of the Money Advice Liaison Group has been lost.”

While most of the Banking Code is being operated as statutory Code of Practice directly by the FSA, the credit and financial difficulties sections move to the The Office of Fair Trading to sit beside the OFT’s duties controlling issue of Consumer and Business Credit Licences.

Joseph Harris, Debt Control Man