Consumer protection in relation to personal finance

Question 1

What is consumer protection

Answer 1

Laws/policies/organisations that aim to stop consumers being treated unfairly or exploited

Question 2

What is the Financial Conduct Authority(FCA)

Answer 2

Aims to improve workings of financial markets and ensure consumers get a fair deal
Consumer champion
Ensures consumers are protected, integrity of financial system is enhanced

Question 3

What can the FCA do

Answer 3

Oversee design of financial products
Ban products
Prevent exploitation of consumers
Change misleading promotions

Question 4

What is the Financial Ombudsmen Service(FOS)

Answer 4

Set up by Parliament

Resolves disputes between individuals and financial service providers e.g pension advisers

Question 5

What can the FOS do

Answer 5

Listen to disputes
Understand the events
Provide an unbiased opinion
Identify valid cause for complaint
Support legal action

FOS covers all areas of personal finance

Question 6

What is the Financial Services Compensation Scheme(FSCS)

Answer 6

Provides compensation to customers who have suffered financially as a result of the actions of a financial service provider if the provider cant pay the compensation themselves

Question 7

What does the FSCS cover

Answer 7

Banks/Building societies/credit unions
Pensions/insurance
Mortgages/home finance

Question 8

What does the Consumer Credit Act do

Answer 8

States that credit card companies cannot significantly change their credit offering
Prevents customers from putting themselves in a lot of debt