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View the article online at http://citywire.co.uk/wealth-manager/article/a644036

Stressed high street bank staff still mis-selling

by Daniel Grote on Dec 07, 2012 at 09:24

Stressed high street bank staff still mis-selling

High street banks are still using high-pressure sales tactics among their staff despite the mis-selling scandals that have blighted the sector, according to an investigation by consumer group Which?

Which? conducted a survey of more than 500 staff at HSBC, Royal Bank of Scotland, Lloyds Banking Group, Barclays and Santander.

It found that two-thirds of bank sales staff with targets felt they were under more pressure than ever to meet them. Almost half said they knew colleagues who had mis-sold products to meet targets and four in 10 said targets drove staff to sell products even when they are not appropriate.

The survey also found that four in 10 with targets were subject to ‘power hours’ where they were expected to make a certain number of sales in a specified period of time. It said the most common reason for staff being told to sell more was to hit targets and increase profits, with the customer need ranking low on the list.

A further survey among consumers found that four in 10 were offered a new product they did not deem suitable when they contacted their bank, while a quarter felt pressurised to take it.

Which? Chief executive Peter Vicary-Smith said the survey showed the need for change across the banking sector. ‘We’re calling on the banks to be much more transparent about their sales targets and incentives,’ he said. ‘We also want to see bankers meet professional standards and comply with a fully independent code of conduct.’

3 comments so far. Why not have your say?

Steve Norris via mobile

Dec 07, 2012 at 11:18

Now there's a suprise.....not. I used to work for a mutual building society and they were ruthless on targets. Look what it did to Norwich and Peterboroughs greed on force feeding clients Key Data Structured products through target hungry salesmen. They went bust - deservedly so! With RDR reopening the door for tied advice I can only expect it to get worse. 'Greed is good' should be their moto.

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Doug Sammons

Dec 07, 2012 at 11:40

What are the FSA doing?

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Reg

Dec 07, 2012 at 11:42

Applies to all parts of the banks, not just the retail arms. The Private Banking divisions are just as bad.

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