Adaptations to the Banking Code could give extra security to consumers borrowing from banks, building societies and credit card companies, according to the Banking Code Standards Board (BCSB). New guidance on the code covers consolidation loans, joint income borrowing and a general addition of consumer information on the borrowing process. Subscribers have been told to take more care when providing consolidation loans to those with perceived financial difficulties and lenders should assess the purpose of the borrowing in relation to the period of repayment. Another change includes granting loans in joint names if two incomes have been considered in the repayment process. Ian Mullen, chief executive of the British Bankers' Association, said: "One of the key attributes of the Banking Code guidance is its ability to be adapted to reflect new developments in the market place. "The introduction of the new guidance is a prime example of this in action and formalises good practices that are already widely employed by the industry." Seymour Fortescue, chief executive of the BCSB, added that its recommendations should "encourage responsible lending". He also stated that due to the new guidance, borrowers should have "fewer problems" and banks should have "lower bad debt". The Financial Services Authority (FSA) said earlier this week that young people in particular need to assess their financial situations. As a result, the FSA has begun an initiative to improve the public's financial awareness.

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