Reports 18 – Compliance with clause 20.1 of the Code (Direct Debits)

The Code Compliance Committee (CCC) has undertaken a review into the operation of clause 20.1 of the Mutual Banking Code of Practice (the Code).

 The purpose of this review is:

  • to ascertain the extent to which Mutuals complied with Clause 20.1 of the Code, and
  • to gather the range of responses provided to the shadow shopper and test the shadow shopper’s experience against the requirements set by the Code.

In addition, the report also lists recommendations that Mutuals may wish to consider to improve their compliance in this area:

  • ensuring appropriate information is available for staff to understand the Mutual’s key obligations and processes required to stop a direct debit facility linked to a transaction account, and
  • increasing staff awareness regarding the impact of incorrect advice, particularly upon members experiencing financial hardship.

Please click here to open a copy of our report in regards to the outcome of our investigations.

We hope that this report will assist you in reviewing your procedures and guidelines in regards to your compliance with clause 20.1 of the Code.

The CCC will continue to monitor and assess Mutuals’ compliance with the Code in this particular area as part of its 2011 Annual Compliance Statement (ACS) and measure any improvements. The outcomes of this phase will determine what further actions, if any, the CCC will take.


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