Beware of Miss Selling by Banks

boa-constrictor

My mother got her retirement lump sum recently and arranged a meeting with the Manager of her local bank branch to discuss putting it on deposit while she decides what to do with it long term.

The woman told showed her a brochure for a deposit product they have and claimed it paid 4.5% PER QUARTER. My mother asked me for advice on it and I naturally told her that this was impossible - that it would be over 4 times what the bank gets for money on the money market and it couldn't be done. She contacted the Manager a second time and put this to her and again the Manager was adamant that this was the case. My mother suggested (prompted by me) that it was payable quarterly but the rate was 4.5% PER ANNUM. The Manager insisted that the rate applying was 4.5% PER QUARTER. She said that it was a product brought out to capture SSIA money, it was reviewable quarterly but had been going for 3 quarters now and there was no reason to believe it wouldn't continue.

On hearing this I decided to ring the banks head office and they referred me to an investment advisor in another branch. She peddled the same line about the product until I stopped her in her tracks and asked her if she would guarantee me €4,500 on 31 March if I put in €100k on 1 January. She then said oh no, its 4.5% per annum, payable quarterly. My mother returned to the original branch the following day with a view to getting the Manager to write down what the 3 month return would be on a piece of paper (to be produced at a later date). Immediately it was obvious from the behaviour of the Manager that she didn't want to talk to her. She even suggested that BOI were paying a higher rate than them on deposits, to get rid of her a quickly as possible.

People should beware that Bank staff have huge targets and are under such immense pressure to sell that some will resort to underhand methods. This has been exacerbated of late by the current slowdown.

The old rule when investing applies; if its seems too good to be true - stay away from it.

killbillvol2

Who is Miss Selling?

Lawdie

boa-constrictor wrote:

She even suggested that BOI were paying a higher rate than them on deposits, to get rid of her a quickly as possible.

Who was the bank, I'm not sure by your post. Was the advisor now saying goto BOI with the investment?
Seems like someone giving poor advice or unclear communication.

unclebill98

boa-constrictor wrote:

My mother got her retirement lump sum recently and arranged a meeting with the Manager of her local bank branch to discuss putting it on deposit while she decides what to do with it long term.

The woman told showed her a brochure for a deposit product they have and claimed it paid 4.5% PER QUARTER. My mother asked me for advice on it and I naturally told her that this was impossible - that it would be over 4 times what the bank gets for money on the money market and it couldn't be done. She contacted the Manager a second time and put this to her and again the Manager was adamant that this was the case. My mother suggested (prompted by me) that it was payable quarterly but the rate was 4.5% PER ANNUM. The Manager insisted that the rate applying was 4.5% PER QUARTER. She said that it was a product brought out to capture SSIA money, it was reviewable quarterly but had been going for 3 quarters now and there was no reason to believe it wouldn't continue.

On hearing this I decided to ring the banks head office and they referred me to an investment advisor in another branch. She peddled the same line about the product until I stopped her in her tracks and asked her if she would guarantee me €4,500 on 31 March if I put in €100k on 1 January. She then said oh no, its 4.5% per annum, payable quarterly. My mother returned to the original branch the following day with a view to getting the Manager to write down what the 3 month return would be on a piece of paper (to be produced at a later date). Immediately it was obvious from the behaviour of the Manager that she didn't want to talk to her. She even suggested that BOI were paying a higher rate than them on deposits, to get rid of her a quickly as possible.

People should beware that Bank staff have huge targets and are under such immense pressure to sell that some will resort to underhand methods. This has been exacerbated of late by the current slowdown.

The old rule when investing applies; if its seems too good to be true - stay away from it.

That is such a poor thing to do....

The best thing you said is about Bank Staff being under pressure to sell.....that is 100000% true and someone try'd there luck with your mum...

Wishbone Ash

killbillvol2 wrote:

Who is Miss Selling?

....and in which bank/branch does she work?

cazzy

Wishbone Ash wrote:

....and in which bank/branch does she work?

Shes the bank manager - did you not read it properly. Beware of Miss Selling.

homer911

I'm impressed that she actually got to speak to someone! The Financial Planner in my local bank branch is impossible to get hold of. I cant even get anyone in the branch to answer the phone

If I was her I'd have got it all in writing initially and then brought them to the Regulator - thats disgraceful practice! Under the new Consumer Protection Code these people all have to be Qualified Financial Advisers and pass exams and maintain a minimum continuing level of education!

Better still, PM me the bank details and I'll go round myself and open an account!!