Topic 8 consumer Protection > key terms

Question	Answer
Capital	the money or other assets owned by an individual or a business. In the case of a financial services provider it is refers to the funds provided by the shareholder, not deposits from customers.
Citizens Advice	a charity providing free, independent, confidential and impartial advice on citizens' and consumers' rights and responsibilities
Competition and Markets Authority [CMA]	an independent non-ministerial government department which works to promote competition between providers so that customers benefit
Consumer credit	another term for borrowing understand that "taking credit" or "buying credit" refers to borrowing. However, a credit into a bank account means paying money in
Credit Crunch	a reduction in the availability of loans or a tightening of the conditions needed to obtain one. the global financial crises 2007-2008 began when financial institutions became reluctant to lend funds to one another
Deposit	a sum of money palced by a customer with a bank
Financial Ombudsman Service [FOS]	an independent body set up by Parliament that settles customer complaints about providers at no charge to consumers
Financial Policy Committee [FPC]	a part of the Bank of England that monitors and responds to risks posed to the entire financial services market. Its focus on the whole market make it a MACRO-PRUDENTIAL authority.
Financial Services Compensation Scheme [FSCS]	a compensation scheme that pays compensation to account holders of up to £85, 000 per provider if the provider goes into default {cannot pay account holders the money they have in their accounts]
Independent Commission on Banking [ICB]	a committee formed June 2010, as a response to the global financial crisis. It is considered reforms to the UK banking sector to promote both financial stability and competition
Independent financial adviser [IFA]	a professional who makes financial recommendations to clients, based on available products across a wide range of providers.
Investment banks	banks that are involved in -trading financial assets such as shares, -Underwriting issues of shares by other institutions -and advising on mergers and acquisitions they do not provide services such as current accounts etc as these are provided by retail banks
Lending Code	a voluntary code of conduct that sets out good practice for provision advice about loans, credit cards, charge cards and current account overdrafts. It assures customer that subscribed, that providers follow the Code and gives information on the service they should expect.
Liquidity	the assets that a business holds in the form of cash, that can be used to meet immediate demands for payment. (many assets cannot be used in this way , for example a company that owns a building or machinery would have to sell them in order to make a payment)
Money Advice Service	a consumer information set up by the government to help people maker informed financial decisions
Money laundering	the process of making "dirty" money [gained from criminal activities] "clean", iow: making it look as though the money has been acquired legitimately
Mortgage	a loan taken out to pay for property ,usually over a long term e.g. 25 years
Office of Fair Trading [OFT]	the government department that monitored how businesses compete with each other.it was abolished April 2014 Its responsibilities are shared between the FCA and a new organisation, the CMA
Payment Protection Insurance [PPI]	an insurance product intended to ensure repayments of loans should a borrower face unexpected events that prevent them fr9om repaying the debt
PIN	a secret Personal Identification Number that verifies a user's identity to a system e.g. at a point of sale debit and credit cards
Retail banks	banks that deal directly with consumers e.g. providing current accounts and mortgages
Sub-prime market	lending to and borrowing by consumers with untested or poor credit histories

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Topic 8 consumer Protection > key terms

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	Created by Dawn S_akura over 7 years ago