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Banks and Building Societies

Introduction

Nowadays, banks and building societies offer many of the same types of services and products including current accounts, loans, credit cards and mortgages.  For the purposes of this section, we will call both 'banks'.

What the law says

Parliament has passed very little law to tell the banks how to operate.  But over the years, courts have decided on individual cases which have been brought before them.  This is called 'common law' or 'case law'.  Most case law and any other law, such as the Consumer Credit Act, which also affects the banks, usually involve complex and unusual issues.  As a general rule, banks must do only what is fair in all the circumstances.

Banks are regulated by the Financial Services Authority (FSA).  One of the FSA’s objectives is to make sure that consumers are appropriately protected.  The FSA sets the standards that the banks must meet and can take action against banks if they fail to meet the required standards.

The Lending Standards Board monitors and enforces the Lending Code to ensure organisations that have signed up to the Code provide a fair deal to their customers.

The Lending Code was introduced on 1 November 2009 and is independently monitored and enforced by the Lending Standards Board. Further information about the Code and who subscribes to it can be found at www.lendingstandardsboard.org.uk

Useful information

The FSA’s website for consumers, www.moneymadeclear.fsa.gov.ukprovides impartial information, guides and tools to help you with your money matters – from budgeting to borrowing and savings to mortgages.

You can also phone the FSA’s moneymadeclear team on 0300 500 5000 (whatever tariff you’re on the cost of 0300 number is the same as calling a normal phone number.  If your calls are free, then 0300 is free too, even from mobiles.).

If you would like more information on current accounts and how to choose the best one for you visit the Consumer Direct website, www.consumerdirect.gov.uk/currentaccounts or the NI Direct website www.nidirect.gov.uk

What to do if you have a complaint

If you feel that the bank has acted unreasonably you should complain to them first to give them a chance to put things right.  A problem may not be anyone’s fault and can usually be sorted out quickly if you talk to the company or salesperson involved.  If they don't put it right, ask for details of their complaints procedure.

You can usually make a complaint by phone, by letter or face to face. Try to have all the information you need before you start. Here are some useful tips:

• State your case clearly, and include any relevant dates.  Put the facts down in a sensible order. Avoid unnecessary detail and repetition.  Be firm but polite.
• Include any reference numbers – for example for the product you bought, the account you hold, or a customer reference.
• Send copies of documents, if they are relevant, but always keep the originals.  Every time you write, keep a copy of your own letter for reference.  Most newsagents or post offices have a copying machine.
• If you’re complaining by phone, make a note of the date of the conversation, the name of the person you talked to and the main points you made.  Write a follow-up letter to confirm what was said or agreed.

If you are still unhappy at how they have dealt with your complaint you can contact the Financial Ombudsman Service.

The Financial Ombudsman Service has been set up by law to provide consumers with a free independent service for resolving disputes with financial firms.  Its address and phone number is shown below.

Bear in mind that it is in the banks' own interest to keep their customers satisfied.  Unhappy customers take their business elsewhere and you should tell the bank if you are thinking about doing this.  But remember, you will have to clear any outstanding loan or overdraft before you transfer - unless you can get your new bank to take these on.

From category: Money Matters