Posts Tagged ‘CAB’

Banking Code Changes Update

July 27, 2009

In trying to sort the changes out, particularly in how they affect defaulting debtors, I have been led a merry dance.

I think I have emailed or phoned or both, almost every player in this game of musical chairs.

Finally I remembered that the last time I needed to make sense of this area I got sense from the Banking Code Standards Board. So my thanks to them once again.

I have since spoken to others to try to get detail of how exactly the changes will take effect from November 1. That is pretty close for all those who will be affected, especially the helping organsiations like the CABs and Law Centres.

It seems that while most of the Banking Code disappears into the winding corridors of the Financial Services Authority, the parts dealing with lending move to the Office of Fair Trading – except they don’t.

The wording of the new Lending Code [possibly that is the title] is to be managed by the British Banking Association, which has always done it, and it will be monitored by the Standards Board, which has always done that!

And the OFT will, er, enforce fair treatment, and it has always done that!

So welcome to the new-old, different and unchanged system.

Well the changes have to be re-written, but it seems there will be little time for picking up any errors in wording or possible interpretation. And I understand nothing new will go in before 2011.

Not the advice of the Treasury Committee of 2005, nor that from the Money Advice Trust on behalf of MALG in 2007 – nor anyting else.

Well nothing of help to debtors, anyway.

Let you know what more comes to light.

Joseph Harris
Debt Control Man
http://www.controlyourdebtcrisis.co.uk

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New Banking Code?

June 24, 2009

I assumed that the take over of the Banking Code by the Financial Services Authority (FSA) is going to make a much more useful regime, from the point of view of the debtor.

Now I am far less certain.

Catching up on material like the comments to the last review of the code, and comments on the FSA proposals, I find that the FSA proposals appear to change from the rule approach to a ‘principles-based’ one.

Now your guess is as good as mine as to what that means. Next month the FSA is to publish its proposals – for adoption in November. Do keep an eye open for these proposals.

The Citizen’s Advice Bureaux (CAB), for example, expresses great concern about the proposed changed of style and the fact that the enforcement will be even less than the limp penalties under the British Banking Association (BBA) regime.

CAB points out that the very ones who are most likely to suffer are the vulnerable, the very ones that any system of regulation is most vital to. And, boy!, what grand quagmires lie ahead for interpretation of principles.

The ordinary debtor already faces a seriously uphill struggle. The information most needed is obscure, the area is one they are not familiar with, and they face trained and professional takers backed by massive organisations who wear their legal departments like the six guns of a ‘black hat’ in western films.

The FSA, the FOS and the OFT are all supposed to be making that ‘playing field’ more level and refereed. With this change in prospect my fear is that the field will turn into a blood bath of the innocent. Just like Peterloo.

[Peterloo happened shortly after the Battle of Waterloo and named as a disgraceful mirror of that greatness. It happened on St Peter’s Field near Manchester in 1819. This peaceful meeting was demanding the reform of the parliamentary system – déjà vu!

The crowd of over 60,000 unarmed civilians was charged by cavalry. The whole history of the period was one of the two Britains; that of the industrial and agricultural owners and that of the ordinary people. At least Peterloo shamed the political leadership and reforms followed.

The great 1832 Reform Act was one and the introduction of a civilian police force another. The latter unarmed in response to the shame of Peterloo.]

Joseph Harris
Debt Control Man