Topic 8 Key terms(comsumer protection) Flashcards
Capital
definition:The money or other assets owned by an individual or business,refers to the funds provided by the shareholders, not deposits from customers
chancellor of exchequer
definition: The British Cabinet minister responsible for financial and economic matters and in charge of the Treasury
citizens advice
definition: A charity providing free, independent, confidential and impartial
advice on citizens’ and consumers’ rights and responsibilities
competition and markets authority(CMA)
definition:an independent,non-ministerial government department which works to promote competition between providers so that customers benefit
consumer credits
definition:another term for borrowing, ‘taking credit’ or “buying on credit’ refers to borrowing.Credit into a bank account means paying money in
credit crunch
definition: reduction in the availability of loans or a tightening of the conditions needed to obtain one
credit union
definition:mutual organisations that provides a range of financial products, people in credit union must share common bond
current account
definition: Bank or building society accounts where people can store their
money in the form of electronic balances and withdraw it to make payments
debit card
definition: card that can be used to withdraw cash, to make face-to-face
transactions in, for example, shops and online
deposit
definition: sum of money placed by a customer with a financial services
provider
financial conduct authority(FCA)
definition: One of the two main regulators of financial services in the UK
(the other is the Prudential Regulation Authority)
financial ombudsman service(FOS)
definition:An independent body set up by Parliament that settles customer
complaints about providers at no charge to consumers
financial policy committee(FPC)
definition: part of the Bank of England that monitors and responds to risk posed to the entire financial services market
financial services compensation scheme(FSCS)
definition: compensation scheme that pays compensation to account
holders of up to a certain amount per provider if the provider goes into default
independent commission on banking(ICB)
definition: committee formed in June 2010,response to the global financial crisis. It considered reforms to the UK banking sector to promote both financal stabilty and competition
independent financial adviser(IFA)
definition: professional who makes financial recommendations to clients,
based on available products across a wide range of providers
investment banks
definition: Banks that are involved in trading financial assets such as shares, underwriting issues of shares by other institutions and advising on mergers and acquisitions
liquidity
definition: assets that a business holds in the form of cash, that can be used to meet immediate demands for payment
money helper
definition: independent organisation set up by the government to support people to make the most of their money and pensions.
money laundering
definition: process of making ‘dirty’ money ‘clean’,making it look as though it has been acquired legitimately
mortgage
definition: A loan taken out to pay for a property, usually over a long term
office of fair trading(OFT)
definition: government department that monitored how businesses compete with each other,abolished in April 2014 and responsibilities now shared between the Financial Conduct Authority and the Competition and Markets Authority
overdraft
definition: facility that allows an account holder to withdraw more money than they actually have in their account,authorised overdraft is agreed with the bank in advance within certain limits,exceeding those limits or going overdrawn without permission is an unauthorised overdraft
payday loan
definition: loan designed to be taken out for only a very short period, which charges a very high APR
payment protection insurance(PPI)
definition: insurance product intended to ensure repayment of loans should a borrower face unexpected events that prevent them from repaying the debt
prudential regulations authority(PRA)
definition: One of the two main regulators of financial services in the UK
(the other is the Financial Conduct Authority)
retail bankers
definition: Banks that deal directly with consumers, for example providing
current accounts and mortgages
standards of lending practices
definition: voluntary code of conduct that sets out good practice for the
provision of advice about loans, credit cards, charge cards and current account overdrafts.
sub-prime market
definition: Lending to and borrowing by consumers with untested or poor
credit histories
transaction
definition: Buying or selling something
