Mutual finance services companies have been called upon to improve the way they provide advice to members about direct debits and to make it easier for them to get information about dispute resolution services.The Mutual Banking Code Compliance Committee issued its annual report yesterday, which reported widespread failure in several key compliance areas.The committee conducted two shadow shopping exercises, in August and November last year, to assess compliance with the direct debit obligations in the Mutual Banking Code of Practice.The first shadow shopping exercise revealed that seven out of 10 mutuals surveyed provided incorrect or inadequate advice at the call centre level to callers requesting information on how to stop a direct debit linked to a transaction account. The second shadow exercise showed only a small improvement.It recommended further staff training and an increase in staff awareness about the impact of incorrect advice concerning direct debit obligations, particularly upon members experiencing financial hardship.Another review revealed that more than a quarter of mutuals had not made proper reference to the code of conduct in their written terms and conditions.The committee also found that web-based information about internal and external dispute resolution services needed to be more visible.Overall, the committee praised the mutuals for their commitment to improving their standards of practice and service. "However, some mutuals have not given these areas enough attention," it said.Each mutual subscribing to the code is required to provide the committee with a copy of its breach register. In 2010/11, 44 out of 99 mutuals reported breaches. In total, there were 419 reported compliance breaches - up from 144 breaches in 2009/10.Some of the breach types cited were: offset accounts were not linked to mortgage accounts; incorrect interest codes were applied to accounts; bonus interest was not applied to accounts; product fees were not disclosed at the time of application; incorrect comparison rates were displayed in branches; chargeback requests were not actioned; and members' requests for a credit limit reduction were not actioned.