Lesson 26 - Consumer rights, complaints Flashcards
How is someone eligible for a complaint?
Must have suffered loss, distress or inconvenience.
Organisations are eligible - whch 3
Businesses <6.5m <50 employees
Charities <6.5m
Trusts <5m
What is the correct procedure when dealing with a coplaint?
- Acknowledge
- Investigate
- Resolve within 8 weeks
- Inform of progress
- Refer to ombudsan
- final response within 6 months
What is a quick response?
Small complaint dealt with before the end of the 3rd working day.
How long should you hold complaint records for?
3 years
or MIFID = indefinitely
What should you report to the FCA with complaints?
Number of complaints, how many are closed and upheld. How much has been paid out (redress) and a summary of the route cause.
Who can raise a super complaint
Large companies like the citizens advice bureau.
Consumer rights - name the 3 departments
- Consumer rights act 2015.
- Advertising codes.
- Competition & markets authority.
Name 3 things the consumer rights act does?
- Looks after faulty goods or services.
- Deals with consumer disputes
- Deals with unfair contracts.
What do the advertising codes ensure?
- Adverts are Legal, decent & honest.
The A.S.A determines this.
What does the competitiion & markets authority do?
- They are independent.
- Enhances competition.
- Deals with mergers.
- Prevents monopolies.
- Prevents cartels.
- Gives consumers more choice.
What does the Financial Ombudsman (FOS) Service do?
They deal with a complaint when a firm does not deal with the complaint or the person isn’t happy with it.
When the FOS make a decision, what does this mean for the firm?
The decision is binding and is mandatory. Firms pay a levy to the FOS 6 months from a decision being made.
What are the compensation limits when the FOS have made a decision?
since 2019 up to 350k
Before 2019 it was less that 160k
What does the financial compensations scheme do?
They protect customers of firms that go bust.
Name 5 firms (industries) that go bust you would get 85k back.
- Debt management
- Investment firms
- Mortgage firms
- Funeral compaanies
- SIPP operator
- Deposits into banks up to 85k in each individual bank, double for joint account and a 1m temp alloance.
Name 2 industries that pay 90% if the firm goes bust.
- Insurance brokers
- Other
Name industries that you get 100% back if the firm goes bust.
Insurers.
Long term insurance.
Name 8 firms that protect consumers
- FCA
- HMRC - oversee the treasury
- DWP - give welfare benefits
- Single financial guidance body
- Citizens advice bureau
- Which website
- Claims management regulator - look after firms like PPI
- National crime agency.
Summarise consumer protection for estate agents.
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
