THE BANKING CODES

BANKING CODE

This is a voluntary code which sets standards of good banking practice for financial institutions to follow when they are dealing with personal customers in the United Kingdom. It provides valuable protection for customers and explains how financial institutions are expected to deal with them day-to-day and in times of financial difficulty.
The Code applies to:

• current accounts, including basic bank accounts
• savings and deposit accounts including mini cash ISAs, and cash deposit Child Trust Funds;
• payment services, including foreign-exchange services
• cards and PINs
• loans and overdrafts

It does not cover mortgages, investments, insurance, Premium Bonds or currency accounts.

BUSINESS BANKING CODE

The Business Banking Code provides similar levels of protection for 'Business customers'. Business customers include sole traders, partnerships, limited liability partnerships, and limited companies with an annual turnover of under £1 million, as well as associations, charities and clubs with an annual income of under £1 million.
The Code applies to:

• current accounts
• deposit accounts
• merchant services
• payment systems, including services and international payments
• cards and PINs
• business loans and overdrafts

This Code does not apply to currency accounts, factoring (invoice services), leasing, asset finance, hire purchase, investments or insurance.

GUIDANCE FOR SUBSCRIBERS

Guidance for each of the Codes is issued by the Code sponsors as an aid to understanding and implementing the Codes. The sponsors of the Banking Code are the British Bankers' Association, The Building Societies Association and APACS, the UK Payments Association. The Business Banking Code is sponsored by the BBA and APACS. The Guidance represents general interpretations of the Codes, which may be used by the Banking Code Standards Board (BCSB), the Financial Ombudsman Service (FOS) and others in determining industry standards.