B3 - Consumer Protection Flashcards
What does FCA stand for?
Financial Conduct Authority
What does FOS stand for?
Financial Ombudsman Service
What does FSCS stand for?
Financial Services Compensation Scheme
What does OFT stand for?
Officer of Fair Trading
What is legislation?
Consumer credit
What is the consumer credit act of 1974?
It regulates credit card purchases, loans and hire purchase agreements.
What does the consumer credit act cover?
How information is given to customers about interest rates, credit limits, cooling off periods and access to your credit card history data.
Where must firms offering credit be registered?
The FCA.
Why was OFT set up?
Set up by the UK government to ensure competition in all markets and fair treatment of customers
What happened to OFT in April 2014?
Regulation for the consumer credit industry passed from the OFT to the FCA.
Why was the FSCS set up?
Set up by the UK government to compensate customers of financial service businesses that have gone bankrupt.
What does the FSCS provide?
Up to £85000 of lost savings will be refunded
Fees are paid into the scheme by all financial providers in the UK
It only applies to provers authorised by the FCA
What is the FCA?
A body which aims to improve the workings of financial markets and ensure consumers get a fair deal, in essence to act as a consumer champion.
What do the FCA do?
authorise financial service providers to trade (and ban them)
supervise financial service providers (banks, insurers, etc)
enforce rules and protect consumers
promote competition and a wide choice of products for consumers
What is the FOS?
Set up by the UK government to help resolve disputes between customers and financial service providers e.g. banks
