Consumer Rights, Compensation and Complaints Quiz

Comprehensive CEMAP quiz covering consumer protection laws, dispute resolution, and regulatory complaint procedures. Test your knowledge of ADR methods, unfair contract terms, FCA complaint handling, and compensation schemes.

CEMAP Topics Covered: Consumer Rights Act, Alternative Dispute Resolution (ADR), unfair contract terms, FCA complaint procedures, Financial Ombudsman Service, Financial Services Compensation Scheme, Pensions Ombudsman, and eligible complainant criteria.

This quiz is specifically designed for CEMAP students preparing for their exams and financial services professionals maintaining their regulatory knowledge.

CEMAP quiz, Certificate in Mortgage Advice and Practice, consumer rights, complaints handling, ADR, Financial Ombudsman, FSCS, unfair contract terms, compensation schemes

Consumer Rights, Compensation and Complaints Quiz

1. Which Alternative Dispute Resolution (ADR) method under the Consumer Rights Act 2015 results in a binding decision without going to court?

A. Mediation
B. Negotiated settlement
C. Arbitration
D. Informal conciliation

2. In ADR, which process involves a neutral party helping both sides reach a voluntary agreement without imposing an outcome?

A. Mediation
B. Arbitration
C. Tribunal hearing
D. Judicial review

3. A contract term is hidden in small print and heavily favours the supplier. Under unfair contract terms rules, what is the likely outcome?

A. It remains enforceable if the customer signed the contract
B. It is enforceable if its clear on the website
C. It voids the entire contract
D. It may be deemed unfair and unenforceable, leaving the rest of the contract intact

4. Which of the following best meets the FCA definition of an eligible complainant?

A. A large corporation in dispute with government
B. A retail customer suffering financial loss from a firm’s misconduct
C. A trade association raising general concerns
D. A competitor alleging unfair competition

5. What is the correct sequence for handling a complaint in line with regulatory expectations?

A. Immediate escalation to senior management → Written acknowledgement within 8 weeks → Final response → Internal review → Referral to the Financial Ombudsman Service
B. Prompt written acknowledgement → Fact‑finding and evidence gathering → Ongoing updates to the complainant → Issuing a reasoned final response within the regulatory deadline → Advising on external escalation rights
C. Initial verbal acknowledgement → Resolution attempt → Escalation to compliance → Internal archiving
D. Complaint logged → Resolution issued → Acknowledgement sent → Investigation conducted → Ombudsman referral offered

6. After exhausting a firm’s complaint process about a mis‑sold investment, what is the most appropriate next step if the firm is still trading?

A. Apply directly to the FSCS
B. Begin court proceedings
C. Refer the case to the Financial Ombudsman Service
D. Contact the FCA

7. A pension scheme member disputes their benefit calculation due to administrative errors. Which body should they approach?

A. Financial Services Compensation Scheme
B. Pensions Ombudsman Service
C. Financial Ombudsman Service
D. Trading standards

8. Which situation would most likely involve the FSCS rather than an ombudsman?

A. A dispute over bank charges with a solvent bank
B. A complaint about unclear contract terms with an insurer
C. A service complaint about slow claims handling
D. An authorised investment firm becomes insolvent and cannot meet liabilities

9. Alongside goods and services, what else is explicitly covered by the Consumer Rights Act 2015?

A. Digital content
B. Real property transfers
C. Employment contracts
D. Charitable donations

10. Which of the following would not be part of a compliant regulated firm’s complaints procedure?

A. Clear instructions on how to complain at point of sale and online
B. Defined timelines for acknowledgement, investigation, and resolution
C. Charging an administration fee before logging a complaint
D. Escalation routes including referral to the Financial Ombudsman Service

Overcome Mortgages is a trading name of CS Financial Group Limited, registered in England and Wales. Registered address: 10/12 Woolpack Yard, Kendal, LA9 4NG. Company Registration Number: 10731629. CS Financial Group Limited is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority

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