The new Code of Banking Practice, which sets out standards of good banking practice, took effect over the weekend. The focus of the revised voluntary code is to provide additional support for people in need.The new code was actually released by the Australian Bankers' Association in January last year, giving its 20 signatories a year of transition. At the time of the release last year, the ABA's chief executive, Steven Munchenberg, said stronger financial hardship provisions would put the onus on banks to be more alert to customers who were in financial difficulty and to respond promptly to requests for assistance. Under the new code, banks are encouraged to contact customers they believe are struggling, rather than wait for the customer to contact them. Code signatories must give a commitment not to combine accounts (taking money from one account to pay debt in another) or assign debt to a third party, such as a debt collector, when they are dealing with a customer in difficulty.The revised code includes a commitment to provide information about low cost or no cost accounts to low income customers and anyone with a Commonwealth concession card, such as a Seniors Health Card.The chargeback rules (having transactions cancelled if goods are not delivered), which are often contentious, have been clarified in relation to both debit cards and debits under recurrent payment arrangements.Signatories to the revised code will only be able to sell debts to third parties that agree to comply with the Australian Securities and Investments Commission's guidelines for debt collectors.There is a greatly expanded section dealing with banking in remote indigenous communities in the new code. Signatories must help customers meet identification requirements and train staff to be culturally aware. Last week, the Financial Ombudsman Service issued a guide setting out how it will take the code into account when considering disputes.FOS said its position was that if a financial services provider adopts the code but does not comply with it then the provider has breached its contract with the customer. In such a case, the customer may be entitled to compensation for any loss suffered as a result of the breach.