Chapter 10: Consumer Protection and Dispute Resolution Flashcards
What types of data does the GDPR apply to?
Personal data of an identified living individual.
Including:
- Race
- Biometrics
- Trade union membership
- Religion
What are the six lawful bases for processing personal data?
- Consent
- Contract
- Legal obligation (e.g. necessary for a firm to comply with the law)
- Vital interests (to protect life)
- Public task
- Legitimate interests
What are the rights of the individual under GDPR?
Right to:
- be informed
- access
- rectification
- erasure
- restrict processing
- data portability
- object
- Right in relation to automated processing of the data
What are the responsibilities of firms under the GDPR?
- Accountability - expected to implement governance measures - e.g. privacy impact assessments
- Breach notification - report breaches to ICO and the individuals.
- Transfers outside EU - regulations imposed for organisations
What does the Data Protection Act 2018 implement?
- Restricts right to access and delete information where there may be legitimate reasons for doing so (e.g. national security).
- Providing the ICO with additional powers.
What does the Unfair Contract Terms and Consumer Rights Act 2015 implement?
- Defines what makes a contract fair
- Sets out what a court should consider when determining fairness
- Sets out when the subject matter and price of the insurance cannot be evaluated for fairness
What makes a term prominent?
If it is brought to the attention of the consumer in such a way that the average consumer would be aware of the term.
What are the three ‘grey listed’ unfair terms?
- Ones that restrict the consumer’s right to take legal action
- Terms which alter the contract unilaterally without reason
- Terms which alter the subject matter and price once bound.
What happens if an insurer has been proven to use unfair contract terms?
The Competition and Market Authority (CMA) and FCA may require an amendment. They might also use an injunction to prevent similar terms.
What is the definition of complaint in the Dispute Resolution: Complaints (DISP) sourcebook?
Any oral or written expression of dissatisfaction about the provision of a financial service which alleges that the complainant has suffered (or may suffer) financial loss, or material inconvenience.
Who are eligible complainants?
- Consumers
- Charities (with revenue less than £6.5m
- Guarantor
- Trustees of trusts < £5m
What is the time period for responding to a complaint set by the FCA?
8 weeks. After that time, the firm should provide a final response or a written response (i.e. why it cannot provide a final response and when it can expect to give one).
What is the function of the Financial Ombudsmen Service (FOS)?
Deals with complaints from eligible complainants. It is used when the insurer has issued a final response and the dispute has not been resolved. They will step in to try and resolve the dispute.
What is the maximum award the FOS can require a firm to pay after April 2022?
£375,000
What is the Financial Services Compensation Scheme (FSCS)?
Covers claims where the firm is unable or likely unable to pay the claim.
What types of insurance does the FSCS cover?
Compulsory motor insurance, general and life insurance.
Which types of insurance are 100% covered by the FSCS?
- Compulsory insurance
- PI insurance
- Long-term policies
- Injury and sickness claims
Which types of insurance are 90% covered by the FSCS?
General insurance.
What are the five principles of the CII code of ethics?
- Integrity
- Compliance
- Client’s interests
- Service
- Fairness
Outline compliance in relation to the CII code of ethics.
The requirement to ensure that the regulations are met both at the individual level and the level of the company.
Outline client’s interests in relation to the CII code of ethics.
Concerns fair treatment of the customer. Including ensuring the product operates as advertised and confidentiality being dealt with.
Outline integrity in relation to the the CII code of ethics.
Deals with avoid taking unfair advantage of the client. And includes notifying the CII of any material circumstances - e.g. remaining solvent.
Outline service in relation to the CII code of ethics.
Communication must be timely and effective. Transparency is important.
Outline non-discrimination in relation to the CII code of ethics.
Treating customers fairly on the basis of the protected characteristics. E.g. age, sex, race, etc.
