consumer protection

Question 1

financial conduct authority (FCA)

Answer 1

aims to improve the workings of financial markets and ensure that customers get a fair deal.
this involves ensuring that consumers are protected, integrity of the financial system is enchanted + there’s effective competition in the marketplace.
- the FCA can oversee the design of financial products, ban products and ensure firms can’t exploit customer difficulties

Question 2

financial ombudsman service

Answer 2

if your bank isn’t treating you correctly the FOS give an unbiased opinion.
- set up by parliament
- help resolve disputes between individuals and financial service providers (independent or pension advisors)
what they do:
- listen to disputes
- understand what’s happened
- unbiased opinion
- support legal action

Question 3

financial services compensation services
(if FOS agrees bank is in the wrong you get referred here)

Answer 3

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.
- this is a final resort
covers:
- banks, building societies and credit unions
- pensions, insurance
- mortgages and home finance

Question 4

office of fair trading

Answer 4

ceased to exist in 2014 when responsibility for protecting customers was passed to more specific organisations
- protecting consumer interests is now the responsibility of the FCA which looks after consumer protection in relation to personal finance

Question 5

legalisation - consumer credit

Answer 5

regulates credit card purchase + gives consumers protection when signing loan/hire purchase agreements. it covered interest rates, credit limits, cooling off periods and access the credit files
- issues include what information should be given to the consumer, how interest is calculated + protection on purchases
(when any form of personal finance is taken out on credit, you have 14 days to change your mind).