Lesson 26 - Consumer rights, complaints

Question 1

How is someone eligible for a complaint?

Answer 1

Must have suffered loss, distress or inconvenience.

Question 2

Organisations are eligible - whch 3

Answer 2

Businesses <6.5m <50 employees
Charities <6.5m
Trusts <5m

Question 3

What is the correct procedure when dealing with a coplaint?

Answer 3

• Acknowledge
• Investigate
• Resolve within 8 weeks
• Inform of progress
• Refer to ombudsan
• final response within 6 months

Question 4

What is a quick response?

Answer 4

Small complaint dealt with before the end of the 3rd working day.

Question 5

How long should you hold complaint records for?

Answer 5

3 years
or MIFID = indefinitely

Question 6

What should you report to the FCA with complaints?

Answer 6

Number of complaints, how many are closed and upheld. How much has been paid out (redress) and a summary of the route cause.

Question 7

Who can raise a super complaint

Answer 7

Large companies like the citizens advice bureau.

Question 8

Consumer rights - name the 3 departments

Answer 8

1. Consumer rights act 2015.
2. Advertising codes.
3. Competition & markets authority.

Question 9

Name 3 things the consumer rights act does?

Answer 9

1. Looks after faulty goods or services.
2. Deals with consumer disputes
3. Deals with unfair contracts.

Question 10

What do the advertising codes ensure?

Answer 10

1. Adverts are Legal, decent & honest.
   The A.S.A determines this.

Question 11

What does the competitiion & markets authority do?

Answer 11

1. They are independent.
2. Enhances competition.
3. Deals with mergers.
4. Prevents monopolies.
5. Prevents cartels.
6. Gives consumers more choice.

Question 12

What does the Financial Ombudsman (FOS) Service do?

Answer 12

They deal with a complaint when a firm does not deal with the complaint or the person isn’t happy with it.

Question 13

When the FOS make a decision, what does this mean for the firm?

Answer 13

The decision is binding and is mandatory. Firms pay a levy to the FOS 6 months from a decision being made.

Question 14

What are the compensation limits when the FOS have made a decision?

Answer 14

since 2019 up to 350k
Before 2019 it was less that 160k

Question 15

What does the financial compensations scheme do?

Answer 15

They protect customers of firms that go bust.

Question 16

Name 5 firms (industries) that go bust you would get 85k back.

Answer 16

1. Debt management
2. Investment firms
3. Mortgage firms
4. Funeral compaanies
5. SIPP operator
6. Deposits into banks up to 85k in each individual bank, double for joint account and a 1m temp alloance.

Question 17

Name 2 industries that pay 90% if the firm goes bust.

Answer 17

1. Insurance brokers
2. Other

Question 18

Name industries that you get 100% back if the firm goes bust.

Answer 18

Insurers.
Long term insurance.

Question 19

Name 8 firms that protect consumers

Answer 19

1. FCA
2. HMRC - oversee the treasury
3. DWP - give welfare benefits
4. Single financial guidance body
5. Citizens advice bureau
6. Which website
7. Claims management regulator - look after firms like PPI
8. National crime agency.

Question 20

Summarise consumer protection for estate agents.

Answer 20

It is governed by the local authorities trading standards.
* Bans unfair practices
* Bans mis-leading practices
* Prevents blacklisting
* Prevents omissions
* Prevents failure to disclose information