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Bank of Ireland sales techniques

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  • 27-07-2010 3:31pm
    #1
    Chipboard
    Closed Accounts Posts: 428 ✭✭


    I was speaking to a girl yesterday who went into a Bank of Ireland last week to open a deposit account so she could lodge a cheque she received from the Revenue Commissioners (tax back).

    The girl In the bank told her that she couldn't do this but that the easiest way to sort it out was to open up a savings account and current account, lodge the cheque into the current account and to set up a direct debit for one third of the value to get it transferred to the deposit over the next three months. As she suspected she was being sold a product which required her to maintain a certain level of savings, she told the official that she was in irregular employment and her savings would therefore be irregular, sometimes as low as €10 or €20 a month (this is the case).

    I showed this girl the Boi website and she picked out the Dualsaver account as the one she was sold. This product requires you to save a min of €100 monthly so it is entirely unsuitable to her needs.

    I think it is an absolute disgrace that bank staff are mis-selling products to customers just to get their sales targets. You would think with all that has gone on and the fact that the govt has mortgaged all our futures for these ba$tards, that they might try and behave with a small bit of integrity.


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    #2
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Maybe the girl wanted a good rate of savings on her tax back. The chq amount could not be large enough for one of the good accounts(Min bal is 15k etc etc) but by opening a current account and transfering the amount over via a standing order would mean she'd end up getting the better savings rate in the end when all the money went over.

    Or,

    what you said.


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    #3
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    Four problems with that;

    - She didn't care about the rate because she has to spend the money to repair her car for the NCT.

    - She won't qualify for the good rate anyway because she won't be able to maintain savings of min €100 a month.

    - She needs instant access (there is a 7 day waiting period on a Dualsaver).

    - Opening a dualsaver is a sale for the bank official / Branch. Opening a deposit account isn't.

    This is miss-selling.


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    #4
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Chipboard wrote: »
    Four problems with that;

    - She didn't care about the rate because she has to spend the money to repair her car for the NCT.

    - She won't qualify for the good rate anyway because she won't be able to maintain savings of min €100 a month.

    - She needs instant access (there is a 7 day waiting period on a Dualsaver).

    - Opening a dualsaver is a sale for the bank official / Branch. Opening a deposit account isn't.

    This is miss-selling.

    If what you say is true then it could be mis-selling. But your idea of sale's is mis-guided. Deposit Retention is what banks are trying to do. Also, again I'm not sure if BOI do this but a product must be suitable for the person whom is taking it and a statement of such would be provided to the customer and in the end of the day the BOI employee did not put a gun to your mates head and tell them to sign the form.


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    #5
    sarahlulu
    Registered Users Posts: 295 ✭✭sarahlulu


    There is no waiting period on a dualsaver acount. Funds can be withdrawn at any stage (once the cheque has cleared)

    There is also no obligation to keep up the direct debit of E100 pm. This can be cancelled at any stage.

    I don't think the staff member in BOI has done anything wrong. Your friend would have been given the option and chose to go ahead with opening the account. Likewise, they have the option to close it at any time. I don't see the harm here.


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    #6
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    According to the T&C its a min 100euro S/O p/m and 7 days notice. Is this enforced, maybe not but according too the op it does not suit the needs of the girl.

    I do agree that the person opening the account was not bullied into their choice or amybe they where and just agreed. Either way its an easy fix. Chq clears, close account and take money.


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    #7
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    unclebill98 wrote: »
    If what you say is true then it could be mis-selling. But your idea of sale's is mis-guided. Deposit Retention is what banks are trying to do. Also, again I'm not sure if BOI do this but a product must be suitable for the person whom is taking it and a statement of such would be provided to the customer and in the end of the day the BOI employee did not put a gun to your mates head and tell them to sign the form.

    What better way of retaining deposits than refusing to open a full access straightforward deposit account and instead opening an account which requires you to keep feeding it and limits your access to funds.

    According to what you state there is no such thing as miss selling. Does anyone ever have a gun put to their head. The official lied to her when she told her she couldn't lodge the cheque to a deposit account. She then sold her a product clearly didn't suit her needs. This is text book miss selling and if you can't see that you don't know what you're talking about.


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    #8
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    sarahlulu wrote: »
    There is no waiting period on a dualsaver acount. Funds can be withdrawn at any stage (once the cheque has cleared)

    There is also no obligation to keep up the direct debit of E100 pm. This can be cancelled at any stage.

    I don't think the staff member in BOI has done anything wrong. Your friend would have been given the option and chose to go ahead with opening the account. Likewise, they have the option to close it at any time. I don't see the harm here.

    I don't really need to reply to you because youve already demonstrated that you know nothing about the subject. The point is that you don't get the sexy interest rate if you don't comply with the t&c eg. if you withdraw without giving sufficient notice. Please read my post again ; she was not given an option, she was lied to.


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    #9
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,920 Admin ✭✭✭✭✭Toots


    The bank isn't enforcing the notice period at the moment, so you can withdraw whenever you like without affecting your rate. I know this both as a staff member and as a customer.

    Also, a deposit account does count as a sale for the bank. I don't know where you got the impression.

    And just FYI, what do you think the banks make the most money off? It's actually those crappy little deposit accounts that pay a paltry amount of interest, because people leave money in them, and the bank barely has to pay anything for it. The higher interest accounts make barely any money for the bank really. I thought this was quite interesting.


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    #10
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    Chipboard wrote: »
    - Opening a dualsaver is a sale for the bank official / Branch. Opening a deposit account isn't

    Which is better at a sales meeting - to say you sold a Dualsaver or a deposit account? Tell the truth cos I already know the answer.


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    #11
    naughty1205
    Registered Users Posts: 43 ✭naughty1205


    Chipboard, a Dualsaver account is a deposit account within Bank of ireland. Same thing.
    If you are talking about a demand deposit account, a customer would get .1% interest on that. I think the Bank official did the correct thing here for the customer.


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    #12
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Chipboard wrote: »
    What better way of retaining deposits than refusing to open a full access straightforward deposit account and instead opening an account which requires you to keep feeding it and limits your access to funds.

    According to what you state there is no such thing as miss selling. Does anyone ever have a gun put to their head. The official lied to her when she told her she couldn't lodge the cheque to a deposit account. She then sold her a product clearly didn't suit her needs. This is text book miss selling and if you can't see that you don't know what you're talking about.

    My apologies, you are quite right there about that but I know what is meant by mis-selling and we can only take your mates side of the story so I'll guess we'll only ever be guessing.

    Like I said, if she was really told she could not lodge a chq into a normal current account then the seller was wrong. But the question she could have asked was can she put the lodgement into that savings account which would have lead to the events that happened.

    You know what, see my 1st post i'll just stick with that.


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    #13
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    naughty1205 wrote: »
    Chipboard, a Dualsaver account is a deposit account within Bank of ireland. Same thing.
    If you are talking about a demand deposit account, a customer would get .1% interest on that. I think the Bank official did the correct thing here for the customer.

    Well I hope you don't work in a bank so. A dualsaver is a particular type of deposit account and it is not a demand deposit in the same way that a fixed deposit is not a demand deposit.

    A client walks in and asks for a deposit account (which btw means demand deposit) and gets a an account which has a notice period and which requires them to drip feed it with a min of €100 per month and that's ok, even though they stated that they couldn't meet the min lodgment? It's not ok it's a joke.

    There is a joke among BOI staff about a guy who walks in looking for a car loan and leaves the branch an hour later with a pension and a PIP and no car loan. The truth is that BOI branches are no more than shops for selling products which are profitable for the bank. They have no interest in lending because that is capital intensive.

    This particular instance isn't a big deal because the customer won't lose any money it's just the inconvenience and the annoyance because the customer is being treated like sh1t as usual. I know someone else who applied for a mortgage in a BOI and was signed up for lifecover on the day and later declined the mortgage.

    I know another guy who was convinced to take out a 20 year PIP at the age of 18. He had a car so obviously his next major purchase was a house. What good was the 20 year PIP to him. He wasn't even going out with anyone - was he saving for his as yet unborn (unconceived) childrens college fees. He had to cancel this and take a loss on it.

    Miss selling is wrong and I believe that tighter regulation will be put in place eventually if Banks don't cop on.


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