learning aim B

Sources of advice and guidance in personal finance

Citizens Advice Bureau

Independent financial advisers

Price comparison websites

Money advice service

Debt counsellors

Citizen Advice Bureau

Charitable trust (volunteers) that offers free advice on financial issues, in particular 'managing debts'

Independent financial advisers

Professional advice on money matters for a fee

Price comparison websites

Online service, websites compare different providers of financial services

Money advice service

Government run advice services, can only be reached by phone or by writng to them

Financial conduct authority (FCA)

is the Conduct regulator for 56,000 financial services firms and the financial market in the United Kingdom.

Individual Voluntary Arrangements (IVAs)

The Individual Voluntary Arrangement is a formal debt solution to pay back debts over a period of time.

Bankruptcy

Debtor or creditor can apply, you must owe at least £5,000.

Will normally end after a year, Official Receiver will tell you when it is over.

Most debts that haven't been paid will be written off although some debts like court fines and student loans can never be written off.

Debt counsellors

Professional advice on debt management, charge for their service

Financial ombudsman service (FOS)

is the UK office expert in sorting out problems with financial services, they settle the dispute between

the consumers and financial institutes (banking, insurance), only get involved if the consumer and the bank cannot solve their problem

Financial service compensation scheme (FSCS)

the United Kingdom compensation fund for customers of authorised financial services firms. Compensate for up to £85,000 against loss caused by a financial institution.

Office of fair trade (OFT)

non profit government department which enforce both consumers protection and also competition/businesses law, now closed and replaced by FCA and CMA (Competition and Markets Authority)

Legislation- consumer credit

is an act passed by government in 1974, improved the law relating to consumer credit within the UK

Financial transactions

an agreement which is carried between buyer and a seller to exchange asset of payment. (it involves a change in the status of the financial of two or more businesses or individuals

(HMRC) Her Majesty's Revenue and Customs

is a non-ministerial department of the UK government responsible for the collection of tax

Fraud

Is a criminal deception intended to result in financial or personal gain

Communication with banks

face-to-face in branch, by post, over the telephone, online

Financial institutions

Bank of England

Banks (e.g. Natwest)

Building societies

Credit unions

National Savings and Investments

Insurance companies

Pension companies

Pawnbrokers

Payday loan companies

Bank of England

Bank run by the Government, in charge of circulation of money, not open to the public

Bank

High Street financial institution that offers a full range of financial services to the general public

Building societies

Offer a range of financial services, owned by members, mainly used for long-term loan and saving schemes

Credit unions

Offer a range of financial services to people in their area (Plymouth Credit Union), owned by members

National Savings and Investments

Offer 'Premium Bonds' to the general public

Insurance companies

Businesses that allow protection against loss or damage in exchange for a premium payment

Pension companies

Offer long-term investment and savings schemes to increase income after retirement

Pawnbrokers

Offer short-term loans in exchange for physical items, interest will be charged when 'buying back' the items

Payday loan companies

Offer short-term loans with high interest rates to individuals regardless of their credit rating