Greater protection for credit customers

Consumers will have greater protection when borrowing money thanks to new measures being undertaken by an independent watchdog.

The Lending Standards Board will look out for the interests of borrowers and monitor the actions of lenders through the new Lending Code which came into force this month.

It will assess the use of credit reference checks and debt collection procedures by lenders, which could make it easier for consumers applying for loans and credit cards.

Robert Skinner, chief executive of the Lending Standards Board, said: "The Lending Code sets out what it means to be a responsible lender covering both credit assessment and the support that will be available if things go wrong."

The news comes after credit card companies agreed with the government's initiatives to stamp out unfair credit card practices last month.