New Independent Review of Lending Code

The Lending Standards Board (LSB) has announced they will begin an independent review of the Lending Code on 18 June. Professor Lorne Crerar has been appointed to undertake the review.

Launched in 2009, the lending code incorporates the debt and credit provisions of the previous Banking and Business Banking Codes. It sets standards of good practice in relation to personal unsecured loans, credit cards, overdrafts and lending to micro-enterprises. The review is seeking comments from all interested stakeholders on the code's content and the revised code will be published in 2011.

All major stakeholders will receive a letter from Professor Crerar in the coming weeks to find out their views on any gaps or deficiencies in the current code, which could be addressed to give consumers better protection. The consultation is open to everyone and details of how you can get involved are available on the websites of the LSB, BBA, BSA and the UK Cards Association.

Gerard Lemos, Chairman of the Lending Standards Board, explained his thoughts on the review: "Self-regulation through the Banking Codes and now the Lending Code has served banking consumers well for nearly 20 years. An important feature of the regime has been the regular independent reviews which have ensured that the Codes remain fit for purpose. We are glad to have secured someone of the calibre and experience of Professor Crerar to undertake this latest review".

Professor Crerar added: "I am delighted to have been appointed as Independent Reviewer of the Lending Code. Responsible lending and the fair treatment of customers in financial difficulties are important to society's well being and I would strongly encourage anyone who wishes to make their voice heard to contribute to this review so that we will be able to deliver an updated Code that fully reflects the needs and concerns of customers".

Meanwhile, Angela Knight, Chief Executive of the BBA, said: "We believe that Professor Crerar is an excellent choice to undertake the review given his long experience in banking law and practice and his independence. The BBA, BSA, The UK Cards Association and their members remain committed to the Lending Code as a piece of self-regulation that demonstrates good credit industry practice. The Code sponsors look forward to working with Professor Crerar to ensure that the Code reflects current developments".

Original article courtesy of DBSG and British Bankers Association.

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