Tuesday, September 28, 2021
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How sales team take you for a ride

Have you ever wondered about the tall claims which insurance companies and financial institutions make while issuing loans, insurance, credit cards? Even though the advertisement seems lucrative enough to grab your eyeballs, the reality is something else. You might have received a call from a customer service executive who makes every effort to sell you the insurance policies, credit cards and loans.

Did you ever observe that these executives are well trained to make sales presentations? They will go all the way to convince you as if you are the beneficiary of this scheme. However, the reality is different as most of schemes are tailor made to benefit the companies. The sales agents take the customers for a ride while making a sales presentation. They don’t give thorough information to the customers about the insurance products.

Often it has been observed that the customer is lured to purchase the insurance by only looking at the advantages it offers. After purchasing the insurance products, the customers face several issues with the products. Even after paying the insurance premiums regularly, sometimes customers find it difficult to get their claims processed.

Insurance claim process is a tedious task as one has to go through various documentation procedures and submit important papers like age, address and income proof and also surrender the original policy documents. If the insured person is hospitalized, then he has to produce a letter from the doctor and provide medical bills and several other documents. Even after the papers are in order, most of the customers are unable to settle their claims on time. Cumbersome documentation processes take time, and make a customer’s life difficult and he feels harassed.

Have you received any call from a credit card issuing company recently? Most of the banks have outsourced this business to third parties like DSA (Direct Sales Agents) who are designated to sell these products to customers. You might have observed that these agents always call every customer and explain him about the advantages of credit cards. Moreover, if they come to know that you are working in a limited company or an MNC then they are happy to issue a credit card. Since you are not aware of the repayment methods and credit limits option, you may feel cheated.

Sometimes, you are being asked to pay for the purchases which you have not made. Several customers also have their amounts debited for no reasons. To make matters worse, some of them don’t even receive their statements on time from the company. Some customers are forced to take credit cards even if they don’t require it. As a result of this, the customers have taken up this matter with the Banking Ombudsman. According to RBI directives, no bank can issue a credit card without the customer’s consent.

When it comes to loans, the scenario is not too different. Most of the customers are lured by the banks and financial institutions, who promise them on the spot loans without any major documentation work. The loan advertisements are so attractive enough to lure a customer who doesn’t even rethink before applying for a loan. Troubles start when the banks start calling the customers asking them to pay the loan instalments.

Sometimes the installments are actually higher than what the customers have been asked to pay. This happens as most of the customers do not know the difference between fixed and floating rates. Banks don’t explain the terms and conditions thoroughly to the customers. Sometimes, the companies themselves switch from fixed to floating rates without the customer having any idea about it.

Most of the customers sign on the dotted line without reading the terms and conditions carefully. Its only after the happening of an incident, they realise that such terms existed in the agreement. The company fails to explain these points to the customers fearing that they may lose a potential customer. They only highlight the advantages which a customer will receive from a particular financial product. As a result of this several customers feel that they are taken for a ride by the financial companies.

So it’s necessary for a customer to be well informed about the product before making any purchase decisions. So the next time, when you find an advertisement about a financial product please take pains to read the fine print carefully. It will ease your troubles and help you to become an informed customer.

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