Consumer Rights, Complaints And Compensation Flashcards
In situations where alternative dispute resolution is being used, which of the following options allows for appeal through the courts?
A) arbitration
B) mediation
C) adjudication
D) conciliation
C) adjudication
Note D) conciliation is not one of the options available under alternative dispute resolution
In summary, in what circumstances is a contract or notice deemed to be unfair?
A contract or notice is deemed to be unfair if it causes significant imbalance in the rights and obligations of the various parties to the contract to the detriment of the consumer
Which of the following would NOT be classed as an eligible complainant according to the FCA’s definition?
A) a private individual
B) a business with an annual turnover below £6.5 million and fewer than 50 emoyees, or an annual balance sheet below £5m.
C) a charity with an annual income of less than £6.5m when the complaint is made
D) trustee if a trust that has a net asset value of less than £6.5m when the complaint is made
D) trustee if a trust that has a net asset value of less than £6.5m when the complaint is made
The net asset value must be less than £5m
Which of the following is a step that must be carried out when a firm receives a complaint, if it can not be resolved within 3 working days?
A) call the complainant to discuss the matter
B) advise the customer that they can refer the matter to the FSCS
C) refer the complainant to an individual in an FCA governing function
D) ensure the complaint is investigated by a person of sufficient competence, who, where possible, is not someone directly involved in the matter under complaint
D) ensure the complaint is investigated by a person of sufficient competence, who, where possible, is not someone directly involved in the matter under complaint
Within what period of time does the FCA expect firms to resolve the majority of complaints?
8 weeks
Once a firm has completed its procedures for resolving a complaint, it must always issue the complainant with a final response letter. True or false?
False.
For complaints resolved by close of business on the third working day from when the complaint was made, the firm must provide a summary resolution communication advising of the right to refer to the FOS if they remain unsatisfied with the firms response.
For how long must records of complaints involving MiFID business be retained by a firm?
A) one year
B) three years
C) five years
D) indefinitely
C) five years
Within what time limits must a complaint be made to the Financial Ombudsman Service?
Within 6 years of the event that gave rise to the complaint or within 3 years of when the complainant should have become aware of reasons for complaint. Whichever is later.
Which organisation is responsible for dealing with complaints relating to the sale of pension products?
A) the financial ombudsman service
B) the pension ombudsman service
C) the pension advisory service
D) the financial services compensation scheme
A) the financial ombudsman service
The pension ombudsman service only deals in complaints regarding the running and administration of personal and occupational pensions
What is the maximum permissable compensation payable by the FSCS for a term assurance policy that provides £100,000 cover over 20 years?
One hundred percent of the value of the policy with no upper limit
