Know Your Rights booklet for bank customers welcomed

News - Banking

Written by Ray Clancy

Wednesday, 10 November 2010 09:07

The UK’s Financial Services Authority has launched a Know Your Rights booklet for bank and building society customers, to clarify the service standards customers can expect and to mark the first anniversary of the regulation of banking conduct.

Millions of banking transactions are successfully executed every day, but in a banking system of this size, it is inevitable that some issues will arise, says the FSA. It believes that customers sometimes feel they don’t know enough about their rights to help themselves, or to challenge what their bank is telling them.

Split into useful sections, for example: opening accounts, moving accounts and solving problems, the Know Your Rights booklet offers straightforward material that a customer can use when dealing with their bank.

In the last year, banking customers have benefited from tougher regulation in the form of the FSA’s banking conduct regime. The booklet reminds customers of their protections, including: advance notification of interest rate changes, refund of unauthorised transactions, and confirmation of acceptable time limits on cash transfers.

The new booklet covers many of the typical scenarios that might affect customers, but is intended to be a key source of information that will grow over time as new, emerging issues are included.

‘Although millions of banking transactions are completed successfully each day, when things go wrong, the only transaction that really matters is the one that let you down. The booklet tells customers what they need to know, what standards they are entitled to, and will be updated to keep them aware of any new issues affecting their rights,’ said Chris Pond, FSA director.

The Financial Services Consumer Panel welcomed the FSA’s publication of advice for bank customers but is calling for further action and research on bank conduct to make sure consumers are getting a fair deal.

‘We welcome the FSA's action in helping the public understand the information they need to make informed choices about financial services. The task is now to make sure that customers really are getting a fair deal. The FSA needs to undertake more research such as mystery shopping to check up on bank conduct and apply greater supervisory scrutiny of bank dealings with consumers,’ said Adam Phillips, Financial Services Consumer Panel chairman.