Consumer Protection In Relation To Finance

Question 1

financial ombudsman service

Answer 1

Resolves complaints between financial businesses and there customers

Question 2

Financial services compensation scheme FSCS

Answer 2

A place that covers consumers when financial firms go out of business

Question 3

Financial conduct authority FCA

Answer 3

independent financial regulator, oversees the conduct of financial firms

Question 4

Office of fair trading OFT

Answer 4

Do routine checks to look into complaints on local traders and they protect consumer interests

Question 5

Legislation consumer credit

Answer 5

Consumer credit legislation act defines a credit agreement between a creditor and a debtor. This gives protection when you enter into a loan

Question 6

Main advantages of consumer protection in relation to finance

Answer 6

• Ensures regulated and fair practices
• creates confidence within consumers
• ensures ethical practices

Question 7

Main disadvantages of consumer protection in relation to finance

Answer 7

The more policies leads to reduced search effort therefore an increase in prices