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Glossary

The words that appear in letters, adverts and regulator updates, explained without jargon.

Complaints and redress

Redress: Putting something right. Usually a refund, compensation, or a correction to your records.
Final response: The business's formal answer to your complaint. It should explain the outcome, the reasons, and your onward rights, including any deadline to escalate.
Ombudsman: A free, independent service that decides disputes between consumers and businesses. Not a court, and not on either side.
Uphold: To decide a complaint in the consumer's favour, in whole or in part.
Distress and inconvenience: Compensation for the non-financial impact of a failing, separate from any money you lost.
Time bar: A rule preventing a complaint being considered because too much time has passed.
Subject access request: A free request for the personal data an organisation holds about you. Useful for obtaining old agreements and call notes.

Discretionary commission arrangement (DCA): An arrangement where the broker could influence your interest rate and earned more commission on a higher rate. Banned by the FCA in January 2021.
Hire purchase (HP): You pay in instalments and own the vehicle once the final payment is made.
Personal contract purchase (PCP): Lower monthly payments with a large optional final payment if you want to keep the car.
Balloon payment: The large optional final payment at the end of a PCP agreement.
APR: Annual percentage rate. The yearly cost of borrowing, including interest and standard fees, used to compare deals.
Broker: The party that arranged your finance, often the dealer, usually paid a commission by the lender.
Voluntary termination: A right in some agreements to end them early once you have paid a set proportion.

Claims management company (CMC): A business that pursues claims or complaints on your behalf, usually for a fee. Regulated claims management is overseen by the FCA.
Letter of authority: A document allowing a firm to act for you and request your information. Check exactly what and who it covers.
Success fee: A charge taken as a percentage of the compensation you receive. Check whether VAT is included and what the percentage applies to.
No win no fee: An arrangement where no success fee is charged if the claim fails. Confirm there are no other charges, including for cancelling.
Cooling-off period: A short period after signing during which you can usually cancel without penalty.

Section 75: A legal right making a credit card provider jointly liable with the seller for breach of contract or misrepresentation, generally on purchases over £100 and up to £30,000.
Chargeback: A card scheme process for reversing a payment. Available on debit and credit cards, with short time limits.
Mis-selling: Selling a product that was unsuitable, or selling it without giving the information needed to make an informed decision.
Packaged bank account: A current account with a monthly fee that bundles benefits such as travel or mobile insurance.

FCA: Financial Conduct Authority. Regulates financial services firms and regulated claims management in the UK.
Financial Services Register: The FCA's public record of authorised firms. Use it to check a firm and its genuine contact details.
Financial Ombudsman Service: Resolves complaints about financial businesses, free to consumers.
Claims Management Ombudsman: Handles complaints about regulated claims management companies.
ICO: Information Commissioner's Office. The UK data protection regulator, including rules on marketing contact.
Action Fraud: The UK's national reporting centre for fraud and cybercrime.

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