The BIG SIX BANKS have been caught. For those who still think the banker is your friend and is only looking out for your best interests, guess again. They’re in the business of selling and making money. The FCAC has finally reported what Financial Experts have known for years!
This report was recently released… but I wonder how soon it will be forgotten? And how much media attention will this important story really get?
Don’t forget, the BIG SIX BANKS are among the Top 10 Largest and most profitable corporations in Canada. They spend billions in marketing each year. That sort of advertising budget can make us forget about these types of announcements.
Facts straight from the report!
If you don’t want to read the entire report, there’s a handy Executive Summary at the beginning that offers important highlights.
“Risks associated with sales practices include the potential for breaching market conduct obligations and mis-selling,” says the report. It goes on to explain FCAC’s definition of mis-selling as: “the sale of financial products or services that are unsuitable for the consumer; sales that are made without taking reasonable account of the consumer’s financial goals, needs and circumstances; and sales where consumers are provided with incomplete, unclear or misleading information.”
Don’t trust your bank to do what’s in your best interest!
“In November 2016, Canadian media reported allegations that a bank was signing up new customers without obtaining their express consent. Following its investigation, FCAC issued a notice to all banks reminding them that the express consent of consumers is to be obtained for all sales of new products and services in a manner that is clear, simple and not misleading. Banks were also reminded of their obligations to provide consumers with the required disclosure. FCAC issued a consumer alert informing consumers that banks were required to obtain their express consent before issuing new credit cards,” the report details.
“On February 3, 2017, FCAC sent a letter to the industry to reinforce and clarify its expectations regarding express consent. Subsequently, in March 2017, FCAC published compliance bulletin B-5 Consent for new products or services to reiterate its expectationsFootnote1,” the report continues.
“In late-February and March 2017, media reports alleged that Canadian banks were using high-pressure tactics and questionable practices to sell a broad range of products and services, citing information received from current and former bank employees. Subsequently, FCAC announced it would conduct an industry review of the business practices related to the sale of products and services by federally regulated financial institutions. FCAC conducted its review from May 2017 through to the end of November 2017, concurrently but separately from a review undertaken by the Office of the Superintendent of Financial Institutions.”
How many warning will they get? Bankers are NOT your friend. Bankers are NOT your friend. That statement is worth repeating!
Let’s remember this report. I think it could be worth publishing over and over again every few months – just to remind Canadians that you should be seeking other opinions. Speak with unbiased professionals who won’t pressure you into making a decision that isn’t in your best interest.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis: 416-224-0114; firstname.lastname@example.org
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.