The Banking Code produced by the British Bankers' Association
(BBA), and followed by most banks, makes it clear that banks will
not be responsible for losses on online bank accounts if consumers
do not have up to date anti-virus, anti-spyware and firewall
software installed on their machines.
"If you act without reasonable care, and this causes losses, you
may be responsible for them," says the Code. "This may apply, for
example, if you do not follow section 12.5 or 12.9."
Section 12.9 says: "Keep your PC secure. Use up-to-date
anti-virus and spyware software and a personal firewall."
The BBA said that it was not aware that any bank had ever
invoked that clause of the Code to avoid covering a consumer's
online banking losses. The new Code came into effect at the
beginning of this week. The latest edition of the Business Banking
Code took effect the same day.
Subscribers to the Banking Code must comply with it and are
given until 1st July to ensure that their practices are in line
with the code.
The Code contains a number of new provisions that the BBA says
will help users of banks' services.
The BBA said that the Code strengthens credit assessment
practices to ensure responsible lending. Some of the finance
world's current troubles are widely blamed on its recent
willingness to lend money to people without stringent enough checks
or safeguards.
The Code also orders banks to provide clearer information about
financial services products, as well as summary boxes for unsecured
loans and savings accounts. It also prohibits subscribing banks
from closing customer accounts as a result of the customer
complaining about the bank.
"The new banking code gives strong commitments that banks will
lend responsibly and will help customers who may be heading towards
financial difficulties,'' BBA chief executive Angela Knight.
The Code has been published as financial regulator the Financial
Services Authority (FSA) said that it will investigate the
treatment of homeowners who are falling behind in their mortgage
repayments. It said that borrowers with poor credit history are at
risk of unfair treatment, and that it would investigate the
situation and report in June.
