Home loan customers protected by Bank charter
A newly introduced charter for the banking industry is set to standardise the level of service received by all home loan applicants within the UK.
The charter was born as a result of a meeting between the Office of Fair Trading, the Financial Services Authority and the Government, whose intention was to set a series of defined rules devised to better regulate the allocation of home loans and general banking services to the British public.
Under the charter, Banks will be required to efficiently assess and identify those customers whose makeup would deem them to be of a higher financial risk to both themselves and the Bank, thus providing the indebted with a safety net against further charges and a worsening of their overall financial position. The charter will also require banks to clarify the specifics of any proposed credit agreement, and will draw heightened attention to the consequences of non-cohesion to the agreement.
One industry expert commented that a set a defined rules or code of practice for the Banking industry would go a long way towards helping those people prone to debt accumulation or simply just making bad financial decisions.
