UK banks face new regulator

Customers are to receive a better service from their banks due to the introduction of new rules.

In the past, UK banks were regulated by the Banking Code Standards Board but the day to day dealing with customers will now be dealt with by the Financial Services Authority (FSA) who will have the power to fine banks and building societies who do not adhere to the rules.

The FSA believe customers have been treated unfairly in the past and should be entitled to a broader exchange of information on instant access and savings acounts and receive better notice of interest rate changes.

Overdrafts, unsecured loans and credit cards will continue to be regulated by the Office of Fair Trading.

The changes have been welcomed by the industry and have received support from the British Bankers Association.

In these times of tough financial harship it is reassuring to know that the UK populace will have greater control of their hard earned finances.