THE LENDING CODE

This is a voluntary code of practice which sets standards for financial institutions to follow when they are dealing with their personal and small business customers (with an annual turnover of under £1 million) in the United Kingdom.  It provide valuable protection for customers and explains how firms are expected to deal with them day-to-day and in times of financial difficulties.

The Lending Code covers subscribers dealings with:

• Consumers

• Micro-enterprises (enterprises that employ fewer than 10 persons and have a turnover or annual balance sheet that does not exceed €2 million

• Charities with an income of less than £1 million

The Code covers:

• Current account overdrafts

• Loans

• Credit cards

• Lending to micro-enterprises and charities

The Code does not apply to non-business borrowing secured on land or to sales finance

The Code is sponsored by:

• The British Bankers’ Association

• The Building Societies Association

• The UK Cards Association