Consumer Protection in Relation to Personal Finance

Legislation is in place to protect consumers, often focusing on fairness, competition and rights to information.
Key laws include the Consumer Rights Act 2015, which governs the sale of goods and services, and the Financial Services and Markets Act 2000, which regulates the financial services industry.

Financial Conduct Authority (FCA): Responsible for overseeing and regulating the conduct of financial firms. They also aim to protect consumers and enhance the integrity of the UK financial system.
Prudential Regulation Authority (PRA): A part of the Bank of England, responsible for the prudential regulation and supervision of banks, building societies and other major financial institutions.

Greater customer confidence: Knowing they are protected by laws and regulatory bodies, consumers may feel more confident about dealing with financial institutions.
Access to compensation schemes: If a financial institution fails, customers can gain access to compensation through schemes such as the Financial Services Compensation Scheme (FSCS).
Fair Treatment: Financial institutions are encouraged to treat their customers fairly and provide clear, fair, and not misleading information.

Consumers have the right to receive goods and services that are as they were described and of satisfactory quality. They also have a right to redress if things go wrong.
Many organisations, such as Citizens Advice, also offer guidance to consumers about their rights.
Customers have a right to complain. Most financial institutions have a complaints procedure, and if the complaint is not resolved, it can be taken to the Financial Ombudsman Service (FOS).

Requirement to comply: Financial institutions must adhere to industry regulations, which can increase their workload and operational costs.
Consequence of non-compliance: If regulations are broken, the financial institutions may face legal implications, hefty fines or damage to their reputation.