Mis-selling is not uncommon during the sale of financial products. Many of us buy investment products with a false impression of the product. While salespersons/advisors are the culprits, we, the investors must share the blame too. We rely too much on the illustrations and pamphlets shared and do not care to look beyond those fancy documents. Advisors/salespersons, on their … [Read more...] about SBI Life Smart Elite: How do you mis-sell the plan?
Every profession requires you to have persuasive skills. You have to persuade your boss to grant you a leave. You have to persuade our team member to agree to your line of thinking. Your boss has to persuade you to work over the weekend. You may say your boss hasn’t really persuaded you to stay work over weekend. But he used his Authority to make you work. You could have been … [Read more...] about The Little Tricks Our Minds Play: How to Avoid being a Victim of Mis-selling?
Mis-selling is not just about selling bad products to the consumers. It is also about selling good products the wrong way. In a way, selling any product that is not suitable for the consumer/investor is tantamount is mis-selling. Selling a life insurance plan to an 80-year old who walked into the branch to open up a fixed deposit is mis-selling. Selling regular premium ULIPs … [Read more...] about LIC Jeevan Shanti: A case of mis-selling?
If you read personal finance section of business newspapers or personal finance magazines, you will realize the mis-selling is rampant in Indian financial services sector. Product suitability is conveniently sacrificed to earn high commissions. Poorly structured upfront incentive structure is one of the foremost reasons behind mis-selling. Sales target or income pressure is … [Read more...] about How Written or E-mail communication with Banks and Financial Institutions can help?
A few days back, I came across a shocking instance of wrongful termination of health cover by a leading private insurance company. I consider this wrongful termination of the coverage based on the events that have unfolded before me. In light of greater information, I may change my opinion. However, at the moment, I do believe the insurance company is at fault in this … [Read more...] about How Apollo Munich Health Insurance tricked my client?
Corporate (or company) Fixed Deposits are just like bank fixed deposits. The only difference is that the borrower is a company (and not a bank). I had written a detailed post on whether you should consider investing in such corporate fixed deposits. The aforesaid post covers various aspects about such fixed deposits from companies. In this post, I will dig deeper into … [Read more...] about Corporate Fixed Deposits: Do not fall for misleading interest rates
Banks have been in news recently for introducing charges for almost everything. There are charges to cash withdrawals from branches, charges for withdrawing from other ATMs and even charges for withdrawing from own ATMs. Recently, HDFC Bank received a lot of flak for levying program management fee for high balanced accounts without seeking approval from the customers. Don’t … [Read more...] about How Banks fleece Senior Citizens?