Proof That Bank Customers Are Only There To Be Legally Scammed - Education Means You'll Be Able To Say NO!
February 2006
The banking union has just released a shocking report showing that an incredible percentage of nearly 40% of Lloyds TSB mortgage specialists feel pressured to sell products they know clients do not need. Basically these mega profit revenue generating products will be in the form of insurance such as the notorious Payment Protection Insurance or PPI.
However, it's wrong to signal out Lloyds TSB because it's a well know fact that most of the financial institutions are carrying out the hard sell on their clients. After all they know that majority of them don't understand what they're buying.
Education is The Way To Fight Back
Believe us when we say if you understand what PPI is then you know two things -
- There's a 90%+ chance you don't actually need it
- And secondly just how expensive it is
Recently we heard of a story about somebody receiving a Capital One credit card with a credit limit of £200. They were pressured to purchase (but didn't) PPI insurance. The salesman explained that the insurance would pay off any balance on the card if they lost their job. But for a total balance of £200 it was laughable that they were offered it in the first place.
A Great Rule Of Thumb For Bypassing Products Your Bank Tries To Sell You
As a rule of thumb whenever you get a phone call from your bank, building society or credit card company trying to sell you something, especially to do with insurance there's a better than 90% chance that you're about to be legally taken for a ride by purchasing an incredibly expensive product.
Instead, the correct tactic is to do just a little bit of research into what you're buying and the associated advantages and disadvantages. Then you'll be in a great position to decide whether you really need it and if so whether you actually need to buy the insurance from them or a cheaper provider.
Remember Insurance Is Normally A Stand Alone Product
- An insurance policy normally doesn't have to be bought by a particular provider
- A good example of this is with holiday insurance, book with Thomas Cook for 2 weeks in Spain and they'll try and sell you an insurance policy for no doubt an expensive price
- But search on the internet or contact a specialist holiday insurance company and you'll be able to save at least 25% if not 50%+ from the Thomas Cook deal, and the cover will be exactly the same
- Similar principles work with home or mortgage insurance, you don't have to take it out with the company you've taken the mortgage with
Summary
Be aware that as a banking customer these days you're viewed as little more than a potential profit making pawn. Of course, not all banks are as aggressive at selling but the banking sector doesn't make its billions pounds profits a year by doing the best for its customers, no they always look after their shareholders first.
Education is therefore the key to saving money or not wasting it. Education doesn't have to be hard but is critical with financial products in this day and age because many products such as PPI are designed to make billions in profits while not really helping the customer that much.
Good luck and one place to start with some financial education is this LearnMoney article - Why You Should Always Turn Detective With Financial Products.
See Also
|
