Consumer Protection Flashcards
What is the Financial conduct authority (FCA) (3)
The FCA is 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
This involves ensuring that consumers are protected, the integrity of the financial system is enhanced and there is effective competition in the financial marketplace
For example, the FCA can oversee the design of financial products, ban certain products if necessary or have them withdrawn from the market, ensure firms cannot exploit difficulties consumers have with complex financial products and change misleading promotions
What is the Financial Ombudsmen Service (FOS) (8)
Set up by Parliament
Help resolve disputes between individuals and financial service providers e.g. independent financial advisers, pension advisers
Listen to dispute
Understand what has happened
Unbiased opinion
Identify if valid cause for complaint
Support legal action
Free, Fair, For everyone.
What is a Financial services compensation scheme(FSCS) (5)
Provides compensation to customers who have suffered financially as a result of the actions of a financial service provider, if the provider is unable to pay the compensation themselves
A last resort
Covers:
Banks, building societies, credit unions
Pensions, insurance
Mortgages and home finance
What is Office of Fair Trading (2)
The OFT ceased to exist in 2014 when responsibility for protecting consumers was passed to more specific organisations
The FCA is now the Government organisation that looks after consumer protection in relation to personal finance
What is Legislation – consumer credit (4)
Laws have been passed, by Parliament, to protect consumers when they buy on credit from businesses.
This may be for example, on credit card, store card or hire purchase agreement.
Issues include what information should be provided to the consumer, how the interest is calculated and protection on purchases
Responsibility for consumer credit is also now the remit of the FCA
