Bank pushing life policy sales

Finns.d

Hi, first time poster but just wanted to see if anyone else experience this with their bank. I recently set up a new life policy with a different bank to my current account bank so no problem so far. My current account bank phoned me up a month later to say that they saw that a new direct debit for a life policy had been set up on my account and would I like to meet one of their representatives to get a better deal. I told them I wasn't but (a) are they allowed to do this and (b) has anyone else experienced this?? A friend of mine who works in a different bank said it was a grey area but that the bank would be possibly in breach of data protection legislation.

AltAccount

I'm not sure of the legal situation, but I'm not at all surprised - branch banking is primarily a sales organisation, always looking to upsell or cross-sell to whoever they think they have a shot at.

Rebel1977

I believe it's a breach of data protection if they said they can see you have a direct debit for xyz life company. I know from experience getting phone call to review my policies etc it's all about sales etc

unclebill98

Its a common practice and not illegal.

Liam D Ferguson

This is against the law and the Data Protection commissioner would be pleased to hear from you. The Professional Insurance Brokers Association recently issued guidance on this very practice.

What is a Data Protection Breach?
The Data Protection office provided clarity in relation to what constitutes a breach of Data Protection...For clarification, below is a list of examples of what would constitute a Data Protection breach.

• Tracking of client bank account transaction history in order to profile a customer for marketing purposes.
• The bank using Direct Debit information as a means to target the customer for insurance/pension products or other marketing.
• The bank using the set up of a Direct Debit to offer competing insurance/pension products.

Evidence required to commence Data Protection investigation
In order for the Office of the Data Protection to investigate such instances they must be supplied with evidence that this practice is ongoing. This evidence would be where an individual customer would have to state that they had received a call from their banking institution, advise who they were dealing and give details of relevant DDs going through their account or details of the specific transaction activity mentioned to them in the call from the financial institution.

phormium

I remember training courses in bank where we were clearly told we were not allowed to prospect in this way but I am sure a lot of them take a chance.

Finns.d

Thanks for the replies, Folks, particularly Liams, very helpful.

broker2008

Finns.d wrote: »

Thanks for the replies, Folks, particularly Liams, very helpful.

Please do something about it though.....

Kennie1

Liam D Ferguson wrote: »

This is against the law and the Data Protection commissioner would be pleased to hear from you. The Professional Insurance Brokers Association recently issued guidance on this very practice.

It's happening everyday of the week and is not just limited to DD's. I had a particular case a number of months ago where a client was making a 6 figure investment and their bank branch rang the customer and asked the customer would they come in and look at their offering and that they could hold payment on the cheque with her permission:eek:

OP it would be great if you would make a complaint

Our man in Havana

Have branches got people monitoring every DD payment?

Finns.d

Yes, will contact Data Commissioner in morning on this. Mentioned the incident to my father in law today and he said that he was contacted by his current account bank (differnet bank to mine) a few months ago who said that they had seen a cheque presented on his account payable to a local insurance broker and would he like to meet one of their representatives to discuss alternative cover!!!