Mis-Selling Culture Still Exists In Banks

Even after the PPI scandal A report by Which? showed again the fact that employees are under the pressure of banks to meet sales target leads to the mis-selling of products.

Among the interviewed were more than 500 sales staff from the UK’s leading five banks – HSBC, Royal Bank of Scotland, Lloyds Banking Group, Barclays and Santander.

The results say that two thirds of the respondents claim the pressure is too much for them.

About half of them said that they knew a colleague who had mis-sold a financial product. Four in ten admitted they sometimes know products are not appropriate for certain customers  and feel under pressure trying to sell them.

The chief executive of Which?  Peter Vicary-Smith said: “This proves the need for big change across the industry and for bankers to put customers first, not sales. We’re calling on the banks to be much more transparent about their sales targets and incentives.”

The total cost for the banks due to the PPI mis-selling scandal is expected to rise above £15bn.

Yet in September banks were told to do away with the bonuses schemes used for encouraging sales of their products, and the result that 41% percent of those quizzed by Which? was a drop in available incentives. On the other hand, more than 81% said that they do not see difference in the pressure meeting sales targets.

A spokesman for the British Bankers’ Association said: “Selling people products they do not need is not putting the customer’s interests first and therefore is ultimately bad for the bank.

“The banks will be looking at the findings of this small survey – along with their own internal research – to understand why any staff might feel otherwise.”

At The Legal Stop, we always put our customers`interests first, because we do not sell just document templates, but high quality legal and business document templates, tailored to suit the clients needs.