Glossary of Terms
Don't know your FOS from your FSCS?
A
ADR (Alternative Dispute Resolution)
A way to resolve disputes without going to court. Includes ombudsman services, arbitration, and mediation. Usually free for consumers.
APP Fraud (Authorised Push Payment Fraud)
When you're tricked into transferring money to a fraudster. Unlike card fraud, you authorise the payment yourself (under false pretences). New rules from October 2024 require banks to reimburse most victims. š APP Fraud Claims
B
Back-Billing Rule
Energy suppliers can only charge you for energy used in the last 12 months if they've failed to bill you correctly. Protects you from surprise bills for old usage. š Energy Billing Claims
C
CCJ (County Court Judgment)
A court order saying you owe money. Affects your credit file for 6 years. Only relevant if a company takes you to court and wins.
Chargeback
A process where your bank reverses a card payment if something goes wrong. Not a legal right but a card scheme rule. Usually must be requested within 120 days. š Chargeback Claims | Template Letter
CMC (Claims Management Company)
A company that makes claims on your behalf, typically charging 25-35% + VAT of any compensation. Most claims can be done yourself for free. š DIY vs CMC
Consumer Rights Act 2015
The main law protecting you when buying goods and services. Gives you rights to refunds, repairs, and replacements for faulty items. š Faulty Goods Claims
D
DCA (Debt Collection Agency)
A company that collects debts on behalf of others. They have no special legal powers ā only bailiffs with a court order can enter your property.
Deadlock Letter
A letter from a company saying they can't resolve your complaint. Allows you to go to the ombudsman before the usual 8-week wait.
F
FCA (Financial Conduct Authority)
The regulator for financial services in the UK. Sets rules that banks, lenders, and insurers must follow. Can fine companies but can't handle individual complaints.
Final Response
A company's formal response to your complaint. Must be sent within 8 weeks. Once received, you can escalate to the ombudsman.
FOS (Financial Ombudsman Service)
Free, independent service that resolves disputes between consumers and financial companies. Can award compensation up to Ā£430,000 (for complaints about events from April 2024). š FOS Escalation Guide
FSCS (Financial Services Compensation Scheme)
Protects your money if a financial company goes bust. Covers up to Ā£85,000 per person per institution for bank deposits.
G
GDPR (General Data Protection Regulation)
Law protecting your personal data. Gives you rights including access to your data and compensation if it's mishandled. š Data Breach Claims | GDPR Letter Template
Grace Period
Time allowed before a penalty kicks in. E.g., councils must give 10-minute grace period for parking before issuing a ticket.
H
HP (Hire Purchase)
Type of car finance where you hire the car and own it after the final payment. Different from PCP where there's a balloon payment at the end. š Motor Finance Claims
I
ICO (Information Commissioner's Office)
The regulator for data protection. Can investigate breaches and fine companies, but cannot award you compensation directly.
L
LBA (Letter Before Action)
A formal letter warning you'll take court action if the dispute isn't resolved. Usually gives 14 days to respond. Required step before starting a court claim. š LBA Template
M
MCOL (Money Claim Online)
The online system for making small claims in England and Wales. Used for court claims up to Ā£10,000.
O
Ombudsman
An independent person/organisation that investigates complaints between consumers and companies. Free to use. Decisions are usually binding on companies but not on you. š Ombudsman Directory
P
PBA (Packaged Bank Account)
A bank account with a monthly fee that includes insurance products (travel, mobile, breakdown cover). Often mis-sold to people who didn't need the insurance. š PBA Claims
PCN (Penalty Charge Notice)
A parking ticket. Council PCNs are official penalties; private "PCNs" are actually invoices. š Parking Appeals
PCP (Personal Contract Purchase)
Most common type of car finance. You pay monthly, then at the end choose to: return the car, pay a balloon payment to keep it, or trade in for a new car. š Motor Finance Claims
Prescribed Information
Specific information landlords must give tenants about deposit protection within 30 days. Failure to provide it can result in 1-3x deposit compensation. š Tenancy Deposit Claims
S
SAR (Subject Access Request)
A request for a company to provide all personal data they hold about you. Must be fulfilled within 1 month. Free to make. š SAR Template
Section 75
Section 75 of the Consumer Credit Act 1974. Makes your credit card company jointly liable if something goes wrong with a purchase between Ā£100 and Ā£30,000. š Section 75 Claims | Template Letter
Small Claims Court
A simplified court process for claims up to Ā£10,000 (England/Wales). No lawyers needed. Also called "small claims track."
Statutory Interest
Interest you can claim on money owed to you. Usually 8% per year for consumer claims.
T
TDS / DPS / MyDeposits
The three government-authorised tenancy deposit protection schemes in England and Wales. š Tenancy Deposit Claims
TPT (Traffic Penalty Tribunal)
Independent tribunal that handles appeals against council parking tickets in England (outside London).
U
UK261
UK version of EU flight compensation rules (EC 261/2004) that continue to apply after Brexit for UK flights. š Flight Delay Claims
V
Vulnerable Customer
Someone who, due to personal circumstances, may be more susceptible to harm. Companies must take extra care with vulnerable customers. š Vulnerable Customers Guide
VOA (Valuation Office Agency)
Government body that sets council tax bands. You can challenge your band through them. š Council Tax Claims
Quick Reference Card
| Acronym | What It Stands For | What It Does |
|---|---|---|
| ADR | Alternative Dispute Resolution | Resolves disputes without court |
| CMC | Claims Management Company | Makes claims for you (for a fee) |
| FCA | Financial Conduct Authority | Regulates financial services |
| FOS | Financial Ombudsman Service | Resolves financial complaints |
| FSCS | Financial Services Compensation Scheme | Protects money if firms fail |
| ICO | Information Commissioner's Office | Regulates data protection |
| LBA | Letter Before Action | Warning before court action |
| PCP | Personal Contract Purchase | Type of car finance |
| SAR | Subject Access Request | Request for your personal data |
| S75 | Section 75 | Credit card protection law |