Topic 25 Flashcards
Consumer rights, complaints and compensation
According to the Consumer Rights Act 2015, which of the following statements best describes the situation that applies when a regulated contract is found to contain a term that is deemed to be unfair?
The:
a. business can choose to bind the consumer to the contract.
b. contract will continue as specified.
c. unfair term will not be binding, but the rest of the contract can continue.
d. whole contract will be invalid.
c. unfair term will not be binding, but the rest of the contract can continue.
The options available for handling a dispute under an alternative dispute resolution scheme include the following, except:
a. adjudication.
b. arbitration.
c. mediation.
d. litigation.
d. litigation.
Jamar has been waiting eight weeks for a response regarding his complaint about a financial services product.
Under FCA rules, what action is he entitled to take?
a. Contact a claims management company.
b. Refer his complaint to the Financial Ombudsman Service.
c. Refer his complaint to the Financial Services Compensation Scheme.
d. Request that the complaint is referred to the firm’s chief executive.
b. Refer his complaint to the Financial Ombudsman Service.
If a member realises that they have cause to complain about their occupational pension scheme, and is unable to resolve it with the scheme, how long do they have to refer it to the Pensions Ombudsman?
a. Eight weeks.
b. Three years.
c. Five years.
d. Six years.
b. Three years.
Aisha’s car insurer has gone out of business, and she has lost £2,000 on her car insurance policy.
How much compensation, if any, may she be entitled to receive from the FSCS?
a. None.
b. £1,000.
c. £1,800.
d. £2,000.
d. £2,000.
Which of the following statements, regarding complaints referred to the Financial Ombudsman Service, is false?
The:
a. firm involved should investigate the complaint before the Ombudsman.
b. firm is charged case fees for the fourth and subsequent cases each year.
c. Ombudsman’s decision is binding on the firm and the client.
d. Ombudsman’s decision is binding on the firm only.
c. Ombudsman’s decision is binding on the firm and the client.
When buying goods or services, consumers have a right to each of the following except:
a. clear and honest information before they buy.
b. to be supplied with goods that are fit for purpose.
c. to get what they have paid for.
d. to pay a fair price that reflects market rates.
d. to pay a fair price that reflects market rates.
The Financial Services Compensation Scheme (FSCS) is under the responsibility of the:
a. FCA only.
b. FCA and PRA.
c. Financial Ombudsman Service.
d. PRA only.
b. FCA and PRA.
Under the FCA’s complaints-handling requirements, authorised firms must aim to resolve complaints within:
a. three working days.
b. one month.
c. eight weeks.
d. three months.
c. eight weeks.
An authorised firm has not given a final response to a complaint after eight weeks.
What is the firm obliged to do at this point?
a. Inform the client that they can refer the complaint to the Financial Ombudsman Service.
b. Refer the complaint to the Financial Ombudsman Service.
c. Inform the client that they can refer the complaint to the Financial Services Compensation Scheme.
d. Refer the complaint to the Financial Services Compensation Scheme.
a. Inform the client that they can refer the complaint to the Financial Ombudsman Service.
