B3 Consumer Protection in Relation to Personal finance Flashcards
What does Conduct mean ?
The manner in which a person behaves
What does the financial conduct authority aim to do ?
They aim to make sure that financial markets work well so consumers get a fair deal
What do the Financial conduct authority ensure ?
They ensure that organisations have customers at heart and only offer appropriate products and services.
- Consumers are treated fairly and can stop organisations breaching the rules from trading
- The Financial market is operating with integrity and honesty
- Promote competition within the market and will carry out investigations if they have concerns relating to a market.
What is an Ombudsmen ?
It is an official who is usually appointed by the government or parliament to investigate complaints and attempts to resolve them.
What is the Financial ombudsmen services ?
It is an organisation who a customer can contact if they have a complaint against their bank , insurer or finance firm.
Who was the Financial Ombudsmen services established by ?
It was established by the government who is free to use
What do the financial ombudsmen services do ?
They are independent and review any complaints , taking consideration of both parties , before reaching an agreement or offering advice.
what do the financial ombudsmen services not do ?
They do not write the rules or fine for the breach of them , as this is the job of the regulator
What is compensation ?
Something , Typically money awarded to someone in recognition of loss , suffering or injury
What are the Financial services compensation scheme ?
It is a UK statutory fund of last resort for customers at financial services. they will pay compensation to customers if a firm is unable or likely to be unable to make such payments.
What do the financial services compensation scheme do ?
It is a free service that will reach totally independent decisions when a claim is made.
Deposits - £75000
Investments - 50, 000
House finance - 50 , 000
What was the office of fair trading and what did it do ?
It was responsible for protecting consumer interests throughout the Uk It was closed down in 2014 and its responsibilities have now passed to different organisations.
What does buying on credit mean ?
It means you don’t pay for it straight away . Usually you have to pay interest too.
What does the consumer credit act regulate ?
It regulates credit card purchases but also gives you protection when you enter into a loan or hire agreement. It also gives you the right to a cooling off period
what does the consumer credit acts set out other than legilastlation covering ?
- credit agreements at a distance
- credit cooling off periods
- credit withdrawal rights
- credit file rights
- credit card purchase additionally rights
What is the consumer credit act 1974 ?
This protects you when you borrow or buy on credit.
Businesses must have licences to give credit . Nobody under 18 is allowed to be offered credit. Businesses have to state the annual percentage rate. If you sign a credit agreement at home you have several days in which you can tear up the agreement . This is called a cooling off period
What is the consumer credit act of 2006 ?
- This states that all businesses who sell products on credit must inform their customers regularly on the balance they owe the business
State 2 organisations that provde consumer protection in relation to personal finance ?
Financial conduct Authority and Financial services compensation scheme
Give 2 types of financial business that are protected by the financial services compensation scheme ?
Banks
Building societies
Describe the role of the Financial Ombudsman service ?
It acts as an independent assessor when dealing with complaints between consumers and financial service providers
