Borrowers will be 'unsurprised' by Banking Code introduction

It will come as little surprise to many bad credit credit card owners and other borrowers that a Banking Code will come into force next month, it has been claimed.

The spate of high street names involved in controversy over the last year alone is enough to underline the need for further regulation, head of research at MoneyExpert.com Pierre Williams has claimed.

He said: "With high street names in court over bank charges, ongoing anger over the misselling of payment protection insurance and rumblings from the highest levels of government over the size of mortgage loans, there's little wonder a new Banking Code is being introduced next month."

The new voluntary Banking Code will apply to credit cards and PINs, current accounts and basic bank accounts, savings and deposits and loans and overdrafts.

Consumers are provided with guidance on how they should expect to be treated by lenders on a day-to-day basis in terms of financial difficulty.