Wednesday, January 22, 2014

Innovative mis-selling

Few weeks back, I had visited PSU bank for some non-cash transactions. I happen to visit this branch after almost two and half years. In this span, plenty of changes took place.

Earlier there were different windows for each transactions. Now, they have concept of single window. All transactions except passbook printing could be done on all windows. Mobile banking, automated machine for passbook printing, seats for customers in queue, etc..

While all these things are welcomed by customers, PSU banks are also getting involved innovative mis-selling.

Now, if you go to them for home loan, you will have to buy their insurance policy. If you go for locker, you will have to purchase ULIP or some mutual fund. If we are ignorant or we are in a hurry for home loan or some thing, one of the product would be forced upon us.
Then there are behavioral selling. I saw a big poster of happy family. Husband, wife and two kids enjoying TV in their living room. The living room was full of costly items like plasma TV, AC, jhoomer and furniture. Along with this, there was a line written below the frame "Give your family all the luxuries with our personal loans" .... Too much... Luxuries with personal loan !!! Then there were slogans like 'Secure your child's future with our XYZ insurance cum investment product', 'Make sure your child goes abroad for higher studies with our shiksha plan'  and so on...

Ashal and Manish Chouhan have stated below points which could be helpful during such mis-selling:

  • Tell them upfront that these products are not compulsion and you know that this is cross-selling
  • Tell them that you would complain to the Branch Manager (This may not work as Manager himself may tell the employees to cross sell)
  • Tell them that you would complain to SEBI, Banking ombudsman or IRDA (which ever is applicable)
  • Last option, buy it, surrender within 15 days and complain to above agencies (this is most convenient and will work, but you will have to be alert to get policy within 15 days and persistent to follow up with the agency)
As Anoop Soni of Crime Patrol says, "Savdhan rahe, satark rahe,  surakshit rahe. Jai Hind"

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