New standards of lending practice
Changes to the voluntary code of practice followed by the main providers credit cards, overdrafts and personal loans are being published today (20 July 2016) following an independent review of the Lending Code.
The new Standards of Lending Practice will build on the current Code and will bring enhanced protections for vulnerable customers and those who may be at risk of financial difficulties.
Commenting on the new Standards, Graham Peacop, Chief Executive of The UK Cards Association, said:
“Credit card providers want the best for their customers, and these new standards set out the clear commitments that all cardholders can expect from their card company, building on the protections for customers provided through the Lending Code for many years. We welcome the outcome of the independent review, which has enhanced the industry code of practice to provide further support for vulnerable customers and those who may be at risk of financial difficulties.”
The new Standards will become effective on 1 October, with the existing Lending Code remaining in force until then.