B3: Consumer protection in relation to personal finance

Question 1

What is the Financial Conduct Authority and what do they do (FCS)?

Answer 1

They are responsible for the functioning of the U.K.’s financial markets. The goal of the organization is to ensure honest and fair markets for individuals.

Question 2

What is the Financial Ombudsmen Service and what do they do (FOS)?

Answer 2

They resolve disputes between consumers and financial services firms. It is free to contact, and has the legal power to order firms to pay compensation to settle disputes.

Question 3

What is the Financial Services Compensation Scheme and what do they do (FSCS)?

Answer 3

They provide compensation to consumers in the event that financial firms fail. It protects your savings and investments.

Question 4

What is the office of fair trading and what do they do (OFT)?

Answer 4

They protect consumer interests and ensure that businesses compete fairly and effectively.

Question 5

What is the legislation of consumer credit?

Answer 5

A set of laws that regulate the actions of lending institutions in relation to agreements such as credit agreements and hires. It sets out what creditors must do when they lend money and when they collect it.