Test will include compliance audits, evidence of effective dispute resolution, mystery shopping and complaint handling. Trade associations currently sponsoring codes of practice will have to prove they meet the new criteria. They will not be able to claim existing OFT support beyond December this year. Success so far has been decidedly patchy. The OFT can offer proactive encouragement for codes that promise and prove they deliver benefits to consumers.
Good codes bring consumer benefits that go beyond the requirements of law.
There can be no presumption that codes supported in the past will necessarily be approved. Sponsors of existing codes can continue to refer to OFT support for the rest of this year and we hope many will want to be part of the new regime, along with new code sponsors. The OFT currently supports codes involving 42 trade associations in 24 sectors. The new approach on codes was announced in a speech by John Vickers to the annual dinner of the Finance and Leasing Association. The Consumer Credit Association of the United Kingdom, The Consumer Credit Trade Association, The National Consumer Credit Federation.