Press Release

Union anger at Bank withdrawal from UK banking code

Union anger at Bank withdrawal from UK banking code

10 November 2008

Unite, the UK's largest financial services trade union has branded the decision by HFC Bank to withdraw from the Banking Code a disgrace.

The HFC Bank, a wholly owned subsidiary of HSBC, will no longer sign up a voluntary form of regulation committing banks to lend money in a responsible way.

Since the start of the financial crisis Unite has been arguing that these need to be better regulated. There is a growing consensus that banks need full and proper mandatory regulations.

Rick Coyle, Unite Regional Officer, said: "The public will be angered and dismayed to hear the disgraceful news that HFC Bank has simply walked away from the Banking Code. The so-called 'light-touch regulation' of financial services is clearly not working. Our financial system needs mandatory regulations, not voluntary codes.

"Unite has launched a 'Social Contract' which calls for a strengthening of regulation across the financial services sector, in order to hold the sector to account.

"Our members are concerned that this decision will leave them having to do unethical things such as ringing customers at unsociable hours."

Unite are currently running a recognition campaign and have recruited over 200 members within HFC.