The number of banks and financial institutions mis-selling financial products is on the rise. Banks are selling third party products like insurance plans and mutual funds to customers. After selling these products, banks wash their hands and do not listen to customer grievances.
If your bank has sold a financial product that was not suitable and didn’t match financial needs, make a complaint at the banking ombudsman, as you might be able to recover some of the money lost due to mis-selling of financial products.
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Financial mis-selling of insurance involves selling insurance plans which don’t meet financial goals or not updating customers on essential facts necessary for decision making. There are many cases where insurance agents have misled customers by not explaining the risks associated with the product.
Insurers assign managers to banks who train bank relationship executives sell life insurance plans. The executives often indulge in pushing customers into buying these products to pocket high commissions.
As a bank customer, if you are looking for a loan or investing in a fixed deposit, remember, there is no compulsion to avail an insurance product along with it. The practice of bundling such products leads to forced buying and can result in mis-selling.
There are times when a customer wants to invest a lump sum in financial products involving minimum risk like a fixed deposit. But, due to greedy bank executives he ends up getting trapped into purchasing unsuitable financial products like insurance or mutual funds which don’t meet financial goals. Customers often get trapped by promises of high returns vis-à-vis the lower returns of fixed deposits. They land up buying ULIPs which are market-linked products and subject to high risk.
A customer can raise a complaint with the banking ombudsman in the following circumstances:
Take a look at steps to file a complaint against mis-selling of financial products:
Are you cheated by Insurance Agents? 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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