# Deceptive banking practices



## spirit (May 9, 2009)

https://www.cbc.ca/news/canada/nova...avHa_yPTTtnWpYWk6MGOxe8uAmD39UVXfGUUS5euk0nSU

Just read this on another site and had to post it. Although our account has not been gerrymandered to show this cost...I thought others here might want to check their card items.

Pretty shady banking tactics.....hard to think that the best advice would be to hang up on any legitimate phone call from my bank. What's next...not listening to any "advice" from my tellers? Or financial representative? The last one was a joke....you guys have taught me well here on CMF.


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## Beaver101 (Nov 14, 2011)

> ... In an email to CBC, RBC spokesperson Trish Vardy apologized for any confusion.
> 
> "After fully investigating Ms. MacIsaac's file, we decided to offer her the refund she was seeking. Our goal is to ensure clients are happy with the products *they purchase*," Vardy said.


 ... this response from the "bank" via their "rep." tells me they'll continue with this deception.


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## Eclectic12 (Oct 20, 2010)

spirit said:


> ... Although our account has not been gerrymandered to show this cost...I thought others here might want to check their card items.


I check each monthly statement 



spirit said:


> ... hard to think that the best advice would be to hang up on any legitimate phone call from my bank.


Assuming the call is legit, they are typically trying to switch CC's, arrange a financial consultation or sell something I don't need. With how easy it is to misrepresent the calling number and sound official, I typically let it go to voicemail and might stop in at the branch if it seems like something I am interested in.


Cheers


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## Money172375 (Jun 29, 2018)

Former banker here. Although this type of balance protection on credit cards wasn’t sold at the branch level where I worked. 

Clearly the banks can be better at articulating costs and using simple language. I’ve heard calls where this product has been sold and in all cases, the customer had agreed to it. In all cases as well, the rep was speaking fast and if you aren’t working in the industry, I can see how it can be confusing.

The typical charge for this type of insurance is usually quoted in a “per $100” balance. Example...the cost is $1.20 per $100 balance. It initially sounds cheap, but most insurance is quoted “per $1,000”. At a per $100, the costs can add up. I’d like to know how the woman in the story racked up that much in charges.....it must have been a fairly large balance carried over a fairly long time. Looks like her statement showed a $15 change. 
At that rate, it would have taken 20 years to rack up $3900.

The consumer has some responsibility in reviewing statements and be accountable for their own decisions. I often struggle when I hear these types of stories levied against banks. I think it’s important to separate bank strategies and sales tactics vs the rouge employee. It’s hard to believe the bank is knowingly encouraging advisors to be deceptive and/or withholding information regarding fees...or any other product features. In fact, I never witnessed this while working both in a branch or head office environment. In fact, we were challenged to be transparent and regular audits conducted to verify that. The “deception” most often occurs when a rouge employee feels the need to “go off on their own” and act unethically. This can become part of the bank culture if left unchecked. It is not necessarily easy to monitor this unless you’re recording every transaction/conversation whether on the phone or in person. I know big green has taken a lot of steps in the last few years (after the CBC go public story) in an effort to reduce the sales culture and de-emphasize hitting sales targets. That being said, the biggest component of ones incentive compensation was always tied to the customer service scores (surveys) found at a particular branch/call centre. Team performance was important and individual performance ranked last. It always surprised me when an unethical teller would act in such way when there was perhaps $1-2000 in bonuses available to them. I think it was more ego than dollars that drove their need to be at the top of the sales charts.


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## ian (Jun 18, 2016)

I believe that many people are just too lazy or too trusting to really understand what service charges, hidden, understated, or otherwise they are actually paying. Whether it comes to MERs, deposit rates, loan rates, overdraft or cc rates.

Early on we had a banker friend explain to us how to get our mortgage rate shaved, how not to pay certain service charges, and most importantly always be willing to take your business across the street. This advice saved us a great deal of money over the years.

We do like bank stock though. Canadians are so passive when it comes to bank fees of all sorts.


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## Beaver101 (Nov 14, 2011)

ian said:


> I believe that many people are just too lazy or too trusting to really understand what service charges, hidden, understated, or otherwise they are actually paying. Whether it comes to MERs, deposit rates, loan rates, overdraft or cc rates.
> 
> Early on we had a banker friend explain to us how to get our mortgage rate shaved, how not to pay certain service charges, and most importantly always be willing to take your business across the street. This advice saved us a great deal of money over the years.
> 
> We do like bank stock though. Canadians are so passive when it comes to bank fees of all sorts.


 ... I would agree many people, particularly Canadians being a complacent bunch, are too trusting with their financial institutions. The fault with the lady/customer in the story is she didn't pay attention or question about that "miniscule" extra charge on her credit card. 

OTOH however, if the charge(s) is deceptively hidden, then there is no way a customer would know. A great example would be MER - otherwise why have CRM1+2 reporting after all these years? And not everyone has a "banker friend" who can give tips to save some $.


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## ian (Jun 18, 2016)

We check our card statements each month. An Amazon charge showed up for their za Prime product. We did not want it. We called, the charge was cancelled along with future charges.

I really do not understand how someone can have a $15 or so unexplained monthly charge on a Visa bill for months or years on end and not question it. It may be deceptive but it also may be the result of being lazy or not too bright. It makes you wonder how a person like this handles the rest of his/her personal financial affairs.

The MER’s that we have seen have all been clearly outlined IF you bother to review even the most basic data. 

Buying financial services is no different than any other purchase. It is buyer beware.

Canadian banks count on their retail customers being lazy, complacent, trusting, and yes, just a little dull.


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