Mis-selling is rampant in the financial services industry. It happens in life insurance, banking, mutual funds, stocks and credit cards. India has low financial literacy. More than 75% of Indian adults do not understand key financial concepts. Financial service providers take advantage of this to cheat people. Bankers, Insurance agents and Mutual Fund Distributors cheat customers by selling financial products which don’t meet customers’ needs or do not give the right information necessary for sound decision making.
A lot of mis-selling happens in the insurance sector, especially life insurance. Insurance agents cheat customers by selling life insurance plans like endowment plans (insurance cum savings) or ULIPs (insurance cum investments) which give high commissions. They mis-sell and cheat customers by selling ULIPs and Endowment plans instead of pure risk plans like term life insurance plans.
Bank executives in partnership with insurers mis-sell insurance plans. Bank executives insist on an investment in FDs or cheat customers into availing life insurance plans before offering lockers or sanctioning personal, car and home loans. Credit cards have hidden charges and bankers cheat customers by not disclosing them.
Mutual Fund Distributors cheat customers by selling mutual funds which don’t meet financial needs. Mutual Fund Distributors cheat customers by enticing them to buy/sell mutual funds in short periods of time called churning to pocket commissions. People are encouraged to invest in mutual fund NFO which don’t meet financial needs.
To save yourself from cheating and mis-selling, get a financial education. Want to know more on Term Insurance and FDs? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Let’s understand steps to file complaint on being cheated by service providers.
STEP 1: First file a complaint with insurer grievance cell and give them 15 days to look into the complaint.
STEP 2: Approach the insurance ombudsman and lodge a complaint. You can lodge complaints against LIC, SBI Life, Bajaj Allianz Life Insurance Company, Edelweiss Tokio Life Insurance Company, AEGON Life Insurance, Aviva Life Insurance, Bharti AXA Life Insurance among others.
STEP 3: Submit the complaint in writing along with supporting documentary evidence. The insurance ombudsman will look into your compliant only after you have filed the grievance with insurer. Show proof of acknowledgement that complaint has been filed.
STEP 4: Insurance Ombudsman conducts hearings of both insurer and aggrieved party and settlement gets underway even without your presence.
Take a look at these points:
STEP 1: Submit a written complaint with bank and give them 30 days to resolve the grievances.
STEP 2: If the bank doesn’t resolve grievances, only then lodge complaint with banking ombudsman under whose jurisdiction, the bank branch against which the complaint has been filed is situated. An acknowledgement is a must from the bank that the complaint has been submitted with the bank grievance redressal cell.
STEP 3: The banking ombudsman looks to resolve complaints and grievances through mediation.
STEP 4: If you are happy with the terms and conditions, the banking ombudsman will pass an order which is binding on both, bank and the complainant.
STEP 1: Get your complaint drafted by filing a case in Consumer Court. Approach the right consumer court based on jurisdiction.
STEP 2: Fill in name, address, nature of complaint and against whom the complaint has been lodged in the relevant form. Create a user ID and Password.
STEP 3: Attach supporting documents like Guarantee/Warranty certificate and a copy of the written notice sent to the financial service provider. Also include compensation and relief sought.
STEP 4: You will be given an electronically generated number acknowledging the complaint. Track complaint until it’s resolved.
Are you cheated by financial providers? Lodge a complaint on Iamcheated.com which is a free online consumer complaints portal, which registers consumer complaints online and helps resolve them. If you have been cheated by financial service providers or if you do not receive any response from them, you can post your complaint on Indianmoney.com complaints portal IamCheated.com.
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