Consumers Protection in Relation to Personal Finance (Financial Ombudsmen…
Consumers Protection in Relation to Personal Finance
Financial Conduct Authority (FCA)
Is a body that aims to improve the workings of financial markets and ensure that consumers get a fair deal.
This involves ensuring that consumers are protected, the integrity of the financial systems is enhanced and there is effective competition in the financial marketplace.
FCA (Financial Conduct Authority) can oversee the design of financial products, ban certain products if necessary or withdrawn from the market. ensures firms cannot exploit difficulties consumers have with complex financial products and change misleading products
Financial Ombudsmen Service (FOS)
Set up by parliament.
Help resolve disputes between individuals and financial service providers e.g. independence financial advisers, pensions advisers
They listen to dispute.
Understand what has happened.
Identify if valid cause for complaints
Support legal action.
Financial Services Compensations Scheme (FSC)
Provides compensation to customers who have suffered financially as a result of the actions of a financial service providers, if the provider can not pay the compensation themselves
Banks, buildings and credit unions
Mortgage and home finance
Office of Fair Trading
The OFT ceased to exist in 2014 when responsibility for protecting consumers was passed to more specific organisation.
The FCA is now the Government organisation hat looks after consumer protection in relation to personal finance.
Legalisation Consumer Credit
Laws have been passed, by parliament, to protect consumers when they buy credit from a business.
This may be for example, on credit card, store card or hire purchase agreements.
Issues include what information should be provided to the consumers , how the interest is calculated and protection on purchases .
Responsibility for consumers credit is also now the remit of the FCA.