Banks to face further fines for poor service
The Financial Services Authority (FSA) is to takeover regulation of retail banking conduct in November 2009 at which point it plans to fine banks for poor treatment of their customers.
The FSA are set to issue new rules for banks, buildings societies and credit unions which will hopefully mean that customers are treated fairly, kept informed (eg increased notice of rate changes) and also make it easier for customers wishing to switch accounts to do so.
The FSA is going to carry out a mystery shopping exercise to ensure retail banking customers are being treated fairly.
Before the new rules commence, the FSA has said it will publish comprehensive information for consumers which will set out their rights and outline the minimum levels of service they should expect from their bank or building society.
Vera Cottrell, from the consumers' association Which?, said: "The FSA has to get tough as a regulator and use its full range of powers to keep banks in check. If it relies on the industry to develop its own code, consumers could find themselves worse off."