Backlash as Survey Shows UK Banks Continue Financial Mis-selling

From: Hardwick Financial Solutions Ltd
Published: Thu Jan 17 2013

Research released by the consumer watchdog uncovered high levels of mis-sold mortgages, loans, credit cards and insurance policies across major high street banks.

It has led to widespread calls from finance industry figures for the Government to overhaul the way high street banks operate and are regulated.
Scott Sheedy, managing director at Hardwick Financial Solutions, believes ‘hard sell’ commission structures are the root of the issue and need to be scrapped.

"All banks and building societies are under great pressure from those above to sell as much as they can. Too many bosses simply don't care how much damage or distress they reap upon their customers by selling the wrong (yet very profitable to them) products as long as the money comes in."

The survey polled 500 staff at the five major banks – HSBC, Royal Bank of Scotland, Lloyds, Barclays and Santander – confirmed that while cash-based incentives had been reduced or removed entirely, a culture of pressure-selling remained.

Of those surveyed, 40% have ‘power hours’ in which they are expected to hit a number of sales. One in four said the main reason given by executives to sell more was to meet targets, while one in six said it was to raise profits.
Almost half – 45 per cent – said they feel they are expected to sell regardless of the customer’s benefit.

There was an undercurrent of unhappiness amongst those surveyed, saying they knew that mis-selling wasn’t right or ethical, but workers generally felt fearful of speaking out and potentially losing their jobs.

One anonymous contributor, who simply sought a two-year savings account, said:
"I was being totally bamboozled by a so-called financial adviser at a certain high street bank. He started suggesting options and bringing diagrams out. There were so many accounts it was silly."

"Some of the options were investment products which he highly recommended, but I had no clue about them. I just wanted to stick my cash away into what I thought was a simple savings account and not worry about it for the next two years – but I guess that wasn’t profitable enough for them."

Which? magazine chief executive Peter Vicary-Smith said:

"Senior bankers say the culture is changing but this shows it just isn’t filtering through. This proves the need for big change to put customers first, not sales."

The British Bankers’ Association said:
"Selling products they do not need is not putting customers’ interests first and is bad for the bank. Banks will look at this survey to understand why any staff might feel otherwise."


Hardwick Financial Solutions Ltd cater for clients with complex, historical cases and also help in claiming back money that is owed to them – which in many cases is news to the client themselves. Yiou can view there website here

They act for clients who have been hampered by mortgage mis-selling and fight their corner so they receive what they are rightfully entitled to.

They have long been recognised as one of the leading Claims Management/Financial Solutions practices in the UK and are highly regarded for their depth of knowledge and breadth of experience.
Company: Hardwick Financial Solutions Ltd
Contact Name: Stuart Ward
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Contact Phone: 08001388200

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