New banking and business banking codes are to take effect today (31 March) that see banks and building societies promise to treat customers fairly and responsibly.

Changes to the codes were made after consultation with consumer groups, HM Treasury, the Financial Services Authority (FSA), the Office of Fair Trading and other interested parties.

As well as the promise of fairness, banks and building societies have also pledged to provide more help for customers heading towards financial difficulties, and clearer information about products.

Angela Knight, chief executive of the British Bankers’ Association, says, ‘This new banking code gives strong commitments that banks will lend responsibly and help customers who may be heading towards financial difficulty. The long consultation process, now complete, has shown clearly what customers want and expect from their banks.’

The FSA is reviewing whether, in areas falling within its remit, the current arrangements for regulating retail banking remain appropriate.

This runs alongside the Office of Fair Trading market study into competition for personal current accounts and HM Treasury's consultation on banking regulation generally.

Robert Skinner, chief executive of the Banking Code Standards Board (BCSB), says, ‘We welcome the improvements to the code and there will be further discussions with the BCSB, sponsors, subscribers and consumer experts on how the banking codes will look in the future. The aim is to bring the codes more in line with the FSA's principles-based regulatory approach. We will also be asking if the code should include a section devoted to helping customers help themselves, drawing together issues such as guarding personal identification numbers and understanding interest rates.’