Brits may receive ‘better borrowing advice’

Consumers, including those looking for a personal loan, may be set to receive renewed protection from financial providers.

The news comes as the sector celebrates the 15th anniversary of the Banking Code, which aims to set industry-wide standards among lenders.

However the code’s sponsors, the British Bankers’ Association (BBA), the Building Societies Association and the UK payments association Apacs, are to focus on responsible loan lending and dealing with consumers with financial problems over the coming year.

Chief executive designate of the BBA, Angela Knight, said: "Whether they’re saving or borrowing, customers deserve a fair, transparent and responsible service."

A voluntary regulation system, the Banking Code aims to protect the public and advise financial providers on how they should deal with consumers.

Research conducted by Scottish Widows earlier this week suggested one in five consumers see their mums as financial "role models", believing that they issue the best advice on money matters such as borrowing, debt consolidation and applying for a loan.