Introduction
The Consumer Council (CC) appreciates the opportunity to consider and respond to the draft revised Code of Banking Practice (Code) by the Code of Banking Practice Committee (CBPC).
Whilst this submission contains comment on particular revised provisions made in the Code, additional views on issues related to protection of banking customers are also provided.
In making these comments, CC draws on the knowledge and experience from its research studies and consumer complaints and the fact that since the first comprehensive review of the Code conducted in 2001 CC has dealt with over 5,422 complaints (from January 2002 to April 2008) about financial services (insurance and securities services not included).
Footing on the same ground, CC has also made reference to the two banking codes (UK and Australia) referred to by the Hong Kong Association of Banks in its letter to CC.
Council's Comments on the Draft Revised Code
CC particularly supports introducing new provisions in the Code regarding closing of bank branches and stored value cards, as the proposed changes will result in great improvement in current banking practice. Appendix 1 sets out CC's responses to selected amendments proposed in the draft revised Code and additional views of CC for consideration of CBPC. Unless otherwise noted in Appendix 1, CC supports the amendments proposed in the revised Code.
CC understands that there are at present a lot of guidelines and circulars issued by Hong Kong Association of Banks (HKAB) and the Hong Kong Monetary Authority (HKMA) in relation to some of the comments by CC on the draft revised Code. However, not all these are publicly accessible, and they are found in different documents that consumers may not be able to get hold of easily.
It is crucial to have a comprehensive Code to provide useful information to consumers as to the commitments, as a minimum, to be expected from Authorized Institutions (AIs). This, in fact, is in line with the objective of the Code, namely, "to increase transparency in the provision of banking services so as to enhance the understanding of customers of what they can reasonably expect of the services provided by institutions".
CC believes that comments made in Appendix 1, if incorporated into the Code, would greatly improve the positions of consumers in their dealings with AIs. They would also address many grave concerns raised in the community.
Way Forward
CC is of the view that the Code cannot be of real value to consumers unless they have a sound knowledge and understanding of it. CC therefore considers that there should be more active promotion of the Code by the industry associations, and AIs should provide not only hard copies of the Code in branches but also make it available via the Internet.
In terms of code implementation, CC would appreciate receiving feedback from CBPC as to which of CC's comments it finds suitable for incorporation in the Code, and the comments which are not taken up and the reasons thereof.
As CC is an advocate of consumer interests, CC intends to make its comments available on the website of CC. CC considers it essential that the public be informed so as to promote their confidence in the review process and maximize transparency.
Appendix 1: Consumer Council's Comments on the Draft Revised Code of Banking Practice
