Hidden cameras reveal how big banks are upselling you (Marketplace)
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- Опубликовано: 1 май 2024
- Canadians trust they're getting good financial advice from their banks - especially in these tough financial times. But a hidden camera investigation by Marketplace uncovers immense pressure on bank employees to push products and services to meet sales targets, or risk losing their jobs. Seven years after CBC first investigated the pressure to sell, bank employees say their targets are back up and customers are paying the price.
#Banks #Investigation
00:00 - How banks are upselling customers
08:16 - Hidden camera: Testing financial advisors from the Big Five (TD Bank, BMO, CIBC, RBC, ScotiaBank)
17:30 - Who’s looking out for consumers? (Financial Consumer Agency of Canada and Chrystia Freeland statement)
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THE BIG BANK UPSELL
producers/directors
JEREMY McDONALD
MADELINE MCNAIR
research producer
KIMBERLY IVANY
associate producer
MICHELLE MCCANN
reporter
ERICA JOHNSON
editor
SIMON PARUBCHAK
additional editing
AARON TAYLOR
BENNY KOSHY
camera
NORM ARNOLD
DAVID MACINTOSH
JOHN LESAVAGE
RICHARD GRUNDY
audio
MICHAEL KENNEDY
art director
DAVID ABRAHAMS
media management
ASTORIA LUZZI
social media producers
AMARA MCLAUGHLIN
BRITT PURDY
colour correction
KYLE J. SMITH
sound mix
DANY TREMBLAY
MARIANA HUTTEN CZAPSKI
project manager
VICTOR KERR
resource coordinators
MARC CORMIER
DRAGAN MARICIC
news rollout producer
JENNY COWLEY
packaging editor
BENNY KOSHY
packaging producer
LINDA SIBONY
promo producer
GREG SADLER
senior producer
TIFFANY FOXCROFT
executive producer
NELISHA VELLANI
FIRST BROADCAST :March 15, 2024
One time when I wanted to learn how TFSAs and RRSPs work, I booked an appointment with an RBC financial consultant thinking I would get educated about the basics.. The only thing the guy did during the whole time was try and sell me a specific mutual fund. Didnt bother explaining to me why I should buy it, all he told me was to trust him.. These "advisors" are basically glorified salespeople.
they ARE salespeople
When you honestly get better and more honest advice from the CRA itself than a bank since they actually know what the TFSA and RRSP is vs a bank salesperson. On the irony side our banks are among the strongest in the world and safest.
Exactly! Booked appointment online. Asked for the specific bank and it was clarified location and agreed upon. Luckily I received a call the next day from someone who mentioned my appointment was in another branch. They were surprised at the mistake or I would have turned up at the wrong branch. I will say this person was very thorough; told me exactly what to bring and the process.
Same bro. I went to inquire about tfsa. That guy lied to me to open second checkin account to increase credit score and started charging 16 dollars for each account. Scotiabank financial advisor is full of lie
That happened to me 10 years ago, banker told me to buy mutual funds, but the mutual fund I bought decreased in value. A total waste of time and money.
As Canadians, what are we going to do about it? Nothing? That sounds right.
Yup, its the Canadian Way. Wait 2 weeks till the story becomes irrelevant and move onto some other way we are getting ripped off. However, thanks to CBC for the effort.
As Canadians, what CAN we do about it? Nothing!!!! That's EXACTLY right!!!
Lmao
Right? the new thing I find is wild is it will be on the news now and like learning from the PM .. they just dont feel shame or change .. they are like " OH well its out.. we will just keep doing it" seems to be the way.. they aren't Scared of the news or anything it seems .. no immediate changes .. nothing.. which is strange. And as people most of us don't have a choice.. unless it is cyrpto or where to put your money then right? so you can use it.. be your own bank is about it ? lol
Just buy index ETFs. No one needs mutual funds with 2% fees anymore
I was an Account Manager at RBC, everything in this investigation is 100% accurate. I wish you had interviewed me I could have told you stories I witnessed that would make your hair stand on end at what was going on in the bank
message them directly. this is clearly a story that is not over.
Similar situation as me, I remeber mangers at Alberta Treasury brach trying to attach 2nd and third credit cards to customer accounts. Creating sales teams to cold call customers, pretending to update their information but really pushing for any extra potential sales. I remeber refusing a credit card for a lady because her current credit cards were maxed out. She was approved for 2k but she would never be able to pay them back and be trapped by the debt. I reccomended a credit line in the near future to help bring down her debts and interest rates. Management asked me why i didnt give her a credit card. I told them it was not best interst of the customer and was soon pressured to quit my role after 3 years.
Please ask them to interview you i want to hear your story
There can always be a part 2...
I went to CIBC one time and the lady (supposed financial advisor) wanted me to invest into a mutual fund and when I questioned her why I should choose this over an ETF, she was like what is an ETF? I had to explain her what it is. I mean who is the financial advisor really?
lol
They are only licensed to sell mutual funds, because they're only "trained" about mutual funds.
They really aren't more knowledgeable than the average McDonald's employee, who you'd give a presentation lasting a few hours about mutual funds. And people trust them. It's so sad.
An EFT is an electronic funds transfer, I would have asked you too. What you were asking her didn't make sense. Trying to trick the employee in one thing but at least use terms that make sense to the conversation
@@Elaines-travelsthey were talking about ETF (exchange traded fund)
I worked at RBC for two years. The sad thing is that bank employees who will do anything to make a sale (including lie, like the guy who said the mutual funds will make at least 10% interest) are the ones who get promoted. RBC was the worst company (and the only bank) I ever worked for. The big banks are evil and must be kept in line by strict monitoring.
I had an RBC mutual fund once. After the first year where they took 3% of my principal even though the investment made only 1.7%. I moved it out. Man, the pitiful cries I got.
I had no idea they did this, even after having two meetings with a retirement/investment advisor. I'm learning this today. My question is, do we even have other alternatives for someone with no knowledge of investing but wants to make their money grow? If I move it out of one bank, another is just going to do the same thing. Where do I move it?
@@Zer0rchestraI'm moving my money to a credit union.
@@Zer0rchestra Open a self directed account and buy XEQT for a world etf or VFV for US S&P500 etf.
@Zer0rchestra you look for a financial planner that doesn't work for a bank branch and solely sells mutual funds ... someone with a CFP designation, someone that can build a full financial plan for you and handle the investing portion across a range of investment options.
Bank advisors role should be renamed to salesman. Because that's their role and knowledge level.
Advisors no advise
And the banks switch them out every year or so.... god forbid they form a working relationship with the clients!! Banks... "the financial health of the individual and community be dammed!"
Managers need to be informed about it!
Many years ago I worked for a big bank as a teller. I remember a client with a very big outstanding balance on a credit card on which he could barely pay the minimum. I suggestde him to take a credit line (with much lower interest) and pay off the credit card balance. My supervisor and the branch manager called me and critisized me for working against the interest of the bank. I was told that the best I could do is to suggest a low interest visa (still much higher than the interest on the credit line). The client got this as an offer. I was also given as a bad example at a team meeting and the manager had to intervene to correct this 'error' . This made me leave... still happy about that :) and a great lesson learned - not to trust banks!!! Thank you for bringing up this subject!
This seems unlikely considering that a credit line is considered more worthwhile than a visa on a scorecard.
I agree, this comment is suspect, banks are all about selling as many products as possible. A line of credit is just another sale.
The branches don't benefit from someone with a high balance but they do from opening new products.
@@TheGIGACapitalist as a person who works in a bank formerly, this is correct. this person's comment is very suspicious.
Gerganaeugenie, what bank did u work at….? I worked at a bank for so many years, and I’ve helped se many clients open line of credits and used it pay off their credit cards from the same bank. Never once did that become an issue with my mangers. It was actually encouraged because we were taught to help the clients and at the same time to open products they need
I worked for a bank before and your comments sounds likes one of those reddit stories. If the client has a lot of debt, the main focus of advice would be reducing debt and interest so they won't become a risk/liability to the bank.
I am former bank employee . Selling is everything. It is foundation of banking in Canada that copied from US banking business model . You sell even if you are bank manager . You will never get promoted if you do not sell enough . My co worker worker 30 years in banking and never got promotion and remained as teller . Those who sell will reach branch manager position in 2 or 3 years , I know a guy who jumped to management position and he was only 27 years old started from bank teller 3 years prior . You get huge points after enough meeting quota and targets . My coworker went cruise trip to several countries because of meeting huge sells targets . You have to meet branch manager each week to do performance review which is basically meeting your sales goals . You have to sell even as branch manager . Even if you go to insurance or wealth and corporate division still you are getting this high paid positions cause you are monumental in upselling and cross selling . Bank CEO even bank of Canada recent and past CEO did the same when they were tellers and branch managers etc . This is full blown scam but we must change this . Pressure is immense to sell for employees .
Slight correction to this (and mostly in agreement).
There are also instances where staff who ethically sell to clients, as in seeing a legitimate need of the client and matching it to the appropriate service, who do achieve/exceed targets can be kept in a role if their peers at the branch are deficient because if that person moves up, it then makes that manager look back for having a systemically failing team. But if that person (or two) are kept in place, higher managers see the net numbers and give them breathing room.
I am also a former bank employee and I can tell you directly from my experience it happens even to exceptional staff where they are "strategically" kept in a dead role to protect branch numbers.
@@OniNoFro your role must be HR or something deals with sales targets . But most of my colleagues moved up who were obedient to system . If you apply for a job and you meet sales quota then your chances are more than 90% to get that job . Yes and very few circumstances as you explained. In my branch turnover was high and lots of staff in various positions resigned too.
I'm smart, and I keep my money at Chase Bank South of the border.
Damn, a performance review every week sounds excessive.
@@rotatorcuffs8140 that was for my branch and several other branches I was in contact with . We had chat software like Skype that connected all staff from bank from around entire country . But few branches with better managers did a monthly review . Also for my branch when manager was on vacation then there was no performance review . On special occasions of manager birthday etc as well . When you are on probation then review mostly focused on customer service stuff .
This is the kind of journalism this country needs! Bravo!
If the Banks broke the law, then the police need to get involved
yeah the same
police telling Toronto people to leave their keys on top of the car parked outside so thieves wont break into their homes. we really can trust our police force right? Canada has become such a joke (it is outright embarrassing)
They HAVE broken the law. Govts rewarded them. (US…..but we are naive if we think the same isnt happening elsewhere).
@@walibou287 The job of the police is to enforce the law. So, if someone breaks the law, then the police have to get involved. Look up Sam Bankman-Fried
The only law they broke is adding services to customers accounts without their approval and the employees lying is probably illegal
@@walibou287they break more laws than anyone 😂
Mother worked at TD and it’s all about up sell, cross sell, predatory debt pushers…
I have intensely hated the CBC over the past 10 years or so, wanting them not only to be defunded but to be fined. This was a welcome change, thank you CBC
hey CBC, you should do an undercover about these delivery companies and their pressure on employees to meet the target. this at times forces driver to drive fast which is dangerous for the driver and the people on the road
Telling a client they are eligible for a credit limit increase, a line of credit, and a no-income check credit cards are not inherently bad things. The pressure on sales is unfortunate, the lack of responsibility is embarrassing.
When bank is making 19.99% off credits cards why do they need income check 🤷♂️ end of the month bank gonna pull $10 buck off 🤷♂️
Agreed. People need to learn how to better evaluate their needs and control their finances. Banks are a business. They are incentivized to sell their products like any other business.
This video wasn't even that bad. They tried to script it as worse than it was.
WRONG, all forms of credit increases and new credit products SHOULD BE BY LAW required to pass an affordability test. Specially when the bank made those decision unaware of other insecure debt or insolvency level that clients are facing. It's tossing more gas into the fire without cause. Mor often that not the pre approved products are created from a marketing list not at all connect to verified employment, income and affordability. I was eligible for a line of credit when I was 100% insolvent. We have pre approved lines of credit to people that were not eligible. 7 years in the bank industry, pre approvals are inherently bad and misleading,.
Holy crap, marketplace is such an invaluable show for Canadians rn
True but only when Canadians listen. This is the second time in 7 years that they have done a story on this same issue, and I wouldn't be surprised if they do a 3rd down the road. They did a similar one on the mortgage/credit "insurance" that the banks all sell and how fraudulent that "insurance" is.... yet people still get it to this day.
Most the time CBC just seems to do Headlines or just skim the surface of SERIOUS ISSUES that NEED & DESERVE D E E P-COMMITTED INVESTIGATING!!! and they mostly fall short. Chasing Head lines to save their asses and continue preserving their BILION dollars FUNDING $$$$$$!!!!! WHAT A DISGRACE!!!
Working at CIBC was a nightmare. High pressured sales over and over again.
I worked for one of those organizations. I was let go because I couldn’t meet my targets. The job made me miserable because of the sales pressure. My manager at the time couldn’t care less about treating customers right but cares more about the sales target.
I hope you found a better job.
@@iamedyson it was a struggle but I did end up getting another job. I took the learnings from the experience and I use it to educate people on the this system in my spare time.
Sorry to hear that. I was recently let go of a job for performance-related issues and didn’t perform to their “standards”, so I understand how it feels
Who do you think tells the manager what to care about? Regional managers. And who tells them? Market managers, and who tells them? Upper leadership, and who tells them? Etc
This is why you need to question everything
And before signing any contract read every fine line detail
I agree, but honestly it's sad that this even needs to be said.
"Common sense" doesn't seem to be very common.
Why?
I worked at RBC in customer service. It’s the worst job I have ever had. Your bonus is based on your sales. If you have no sales, you dont get much of a bonus for just being good at customer service. I was terrible at sales because I refused to up sale people for stuff they didn’t need. They teach you how to sell to people and pitch products…
As a former Bank employee for almost 10 years. This article is 100% correct. Either you buy mutual funds and take loans , or the employee gets fired for low performance. Hostile sale environment with colleagues biting each other. Learn the product before going to the meeting , don't trust the advise it will be risky for you. Those banks need to be taken accountable. They make billions. Targets are real ...
Speaking from my experience as a former employee of several Canadian banks, we were coached to look for sales even when a client passed away and families are coming to settle their finances! The pressure from top is no joke!
Yep, BMO tried to screw us over after my dad died. They failed because my sister is a lawyer, but what about others who don’t have that kind of legal knowledge?? It’s predatory.
As someone who use to work in one of the big 5 banks, nothing was more soul sucking than selling something to someone who didn't need it. One of the worst things my managers said to me was "it's not your job to do what's right for customers. It's your job to get them to sign up and sell them products"
The biggest issue with the lines of credit and credit limit increases is that yes it's great if its offered by the bank since it wont hurt your credit score as you're not applying for it.
It's that people arent being educated how credit works. People use credit because theh have it but not educated on how to repay it and to maintain credit.
Once again TD putting pressure on employees makes it to the news, why am not surpised?
Rogers has been adding products on people for 20 years now.
YEEEES!!!!! ROGERS AND BELL CANADA!!!! and BELL Canada had the G U L L to EXTRACT MONIES from their employees RETIREMENT-PENSION FUNDS WHILE AT THE SAME TIME SENDING THEM ON THE UNEMPLOYMENT LINE-ROAD IN THE Late 1980s-90s......What a Joke!!!
This is why becoming financially literate is so important. By the time you know enough to pick a good financial advisor, you no longer need one.
What is needed in Canada is an independent watchdog body that overseas the banks, like they have in the UK. My plan was changed without my permission . 😢
Nothing is independent
Not just banks, there should be a whistleblower agency where people from any industry can act as a whistleblower and have things investigated. Problem is that'll never happen cause the government is in bed with these scammer corporations.
Banks in Britain still do the same thing cuz they are still businesses. But you can choose to have a bank account and credit card with the post office that is directly owned by the government.
We do have one OSFI, but they have taken very less action compared to US and UK watchdogs
You mean like Office of the Superintendant of Financial Institutions ?
I want to be part of a class action lawsuit against these banks, especially CiBC.
the problem with these class action lawsuits is the banks get a small tab on their hands everytime their hands are caught in the cookie jar. and the majority of the settlement went into pockets of the lawyers involved. Just incompetent govt that has led to these monopolies scammy banks that can exist in canada
I left CIBC because I applied for a $10;000 line of credit to buy out my ford loan for a mortgage approval. I was working hard at building income and credit for a mortgage approval. The bank never got back to me so I called to find out what was happening. Turns out I was denied!
Because the BANKER ! applied for $25;000 on my behalf not the 10 I was seeking. She cost me a credit inquiry and it postponed my mortgage for 6 months so I wouldn’t appear as a credit seeker. I eventually bought a house and sold it 7 years later. I had closed all my CIBC . I relocated and when I went to apply for another mortgage it turned out I still had their VISA? I payed it out in full and cancelled the card about 3 years prior. Turned out they charged me 0.27 cents in interest on the card and because there was a balance they refused to cancel the $5000 limit card that was effecting my new mortgage application. CIBC I will never go back. They screwed me more than once.
Same ❤
Class action for... what exactly? A business trying to upsell you? People signing agreements without reading the fine print?
"It almost looks like the whole country is one brand. Like one master company owns the whole country and they make different things like Banks and Grocery Stores. But it's all the same parent company. Does that make any sense?"
- Alchemist on his first trip to Canada.
Wow real journalism from cbc for once
Nice to see
Yeah it's nice to see them actually doing reporting. I guess they need their handouts from the plebes too. Just like the banks.
Rare W for MSM
lol such a backhanded compliment Marketplace always goes deep amazing show! funded by us
I’m not Canadian but I love watching these
This video should go viral !
This is the root of all financial crisis (remember the 2008, when a customer could get mortgage loans and being insolvent at the same time).
And at that time we talked about responsibility.
In the mid 90s I became a teller for RBC. I lasted about 6 months after training as I didn’t like the expectation to push products to people all the time. I just wanted to do transactions for ppl not become a salesperson.
My close friend who was the sweetest, but possibly dumbest person I've ever known, quickly rose to become a Financial Advisor at TD Bank when we were 22. I suspect it was based more on her beauty and loveable personality than her financial savvy. I knew then I would never get my financial advice from a bank lol
that is a100% an active strategy used at banks. Send the pretty people out for certain clientele.
This is what happens when corporations (the wealthy 1% ers) rule our country. We, the people, are just consumer sheep. We work our lives away to make them rich. What a wonderful society we live in.
Batteries
Soon, these problems will be set right by Pierre Poilievre, with his passion for protecting the little guy.
You don’t have to fall for it.
@@thebitey-facepuppyguy2038lol keep dreaming. Will be exactly the same
@@spaceballs-sj3riI was being sarcastic lol.
Not RUclips showing bank ads while watching this video 😂
Thank you for doing this story. BMO has a slogan for its employees - Boldly Grow the Good - I now understand what the good is “Greed”
My god...this is not new. Worked for a financial institution for 21 years and it got worse over time. I ended up quitting because I could not reconcile the sales tactics with my values any longer.
I worked at a bank and despised these predatory schemes that were always rewarded.
I worked for a Big 5 bank 30 years ago and it was just like this. You were expected to identify opportunities with each customer. A large balance in the bank account? Refer them to the "financial planner" so they could be sold high fee mutual funds. And on, and on.
People tell me the nice lady at the bank does their financial planning and I fall down laughing. The nice lady at the bank is probably under-qualified to begin with, not to mention wholly uninterested in "planning" beyond what is necessary to get you into as many of the banks products as possible.
This isn't new. I worked for one of the Canadian big banks back featured here 25 years ago in a call centre and the pressure to upsell was always there, masked as "adding extra value for the clients." It was unrelenting, so much so they had us cold calling clients for mortgage renewals, even people who didn't have mortgages with our bank. They would get the info from municipal rolls where if you have a mortgage, who it's with and it's terms are public record as part of your property tax info. Several of these people were more than annoyed that a bank they didn't deal with was cold calling them trying to get them to switch and wondering how we knew their mortgage was up for renewal soon. And the cherry on top of this was they would have us do this every day, even on Sundays!! More than a few people thought it was a scam call because what bank would call on a Sunday? Apparently we did! I lasted a year and got the hell out of there! Found out just after I left, based on a constant complaints from staff and from the people being called, they stopped outbound sales calls on Sundays.
I always love seeing a CBC: Marketplace episode with Erica Johnson! She was, and continues to be a great host.
Feeland was a journalist in finance......not in finance or accounting.
Every time I get a call from them and they announce who they are I just say “ no I don’t have time and don’t call me back”
You don't get calls from banks. Those are scammers.
I don't know what bank you're with, but with some banks you can go into your account online, and edit what contact you will allow. You can deselect phone contacts, or contacts about certain things, etc.
You can opt out for calls, on their privacy policy
Mutual funds are robbery. Taking 2%+ fees from the investment instead of around 0.3-0.4% for a Vanguard or iShares index fund. On top of that mutual funds will have probably a lower return than the index fund... because most portfolio manager can't beat the market.
@Vormiet You got that right! Unfortunately where I work, they changed the pension plan, what a nightmare that was! Lost tons of money in taxes and some went into a LIRA that you can’t touch until you retire. At retirement that goes into a LIF and you get to pay more taxes. Rrsp more taxes. My old financial advisor at my bank wasn’t working for me that’s for sure. My new one is actually very good and I got a TFSA account that the other advisor didn’t like. This new one is more optimistic and said if I want to take CPP at 60 to go for it! The other advisor told me to wait until I’m 70! No way, I could be dead by then! Oh and I can’t imagine all the fees that will come when you start drawing from those retirement accounts!
@@TheAMBULOCETUSI already know this if your gonna take out your rrsp you have to pay way so much taxes and also they make you wait till 71 years old it’s very hard to keep that money you will be dead who knows at 71😮 it’s tricky. I was talking to more ppl what if your invest the same money in something than keep in rrsp. Everyone keeping-more in rrsp they probably gonna take out when they retire and travel or something who know 😮😅 that’s old
Good information and coverage. Thank you. Would love to see a follow-up.
I have been upsold for years. The key is to do your research on your own & go/call the bank with what you want.
You will realize, the Upsell suddenly vanishes :)
But with titles like "financial adviser", the average person probably thinks they're being, well, advised. It's misleading!
Thanks for sharing.
I was at TD branch few weeks ago and I can’t forget how offended I felt after I was shamed by the bank advisor for holding so much cash with digital banks that I think have nonexistent fees and are much more transparent. She goes saying I’ll find it impossible to withdraw my money if I needed it. Rebutting her wrong I said I’ll issue myself a cheque or withdraw it on an non-affiliated ATM. And she said, “but not all people are tech savvy like you.” Realized the big banks thrive on the financial illiteracy of the people.
I wish they had more testimony from actual customers stating how having or getting a LOC or one of these upsell products negatively or seriously affected them.
write and suggest it to them. this is clearly a story that is not over and needs more coverage to pressure government to then pressure the banks
Yup, 10 years ago. BMO PEI teller upgrade my credit card while I lived in BC without my permission.
When I was a freshman in college, an employee of a major US bank signed me up for a credit card without my consent.
I’m glad news outlets are catching wind of these harmful practices.
Oh finally they make this series, my dad just complaint about how crazy mortgage agents suddenly upselling the line on credits and tricked my dad to sign.
I am with a credit union and don’t have the feeling that they want to upsell me. But I also have some financial understanding, which everybody should have.
I was just at Vancity last week. The teller tried 3 times to get me to buy their product. I was there to withdraw some cash.
should...but don't. unfortunately.
In Australian, the major banks including Westpac , Nab, Commonwealth Bank and ANZ received a heavy a penalty and fine by the federal government at least $1 million Australian dollars relating to financial breaches including selling junk insurance a credit card insurance that customers did not consent to and other financial product that won’t beneficial to customers current financial circumstance. Also it has a lot of restrictions on the financial products.
I think this is a wake up call for Canada financial institution
1 million dollars is the bonus of 1 corporate leader.. that didn't scratched the bottom of the ocean that is the malpractices of banks,
We trust we're getting good advice in so many ways; not just in banking. As for me, from what I have seen in the last 4 years, I trust no one in any position of authority over me & mine. Least of all, banks.
Thanks for at least exposing this.
My wife and I were browsing mortgage providers in 2020. My wife is a TD customer. We went in, spoke with the sales/financial advisor person, who gave us some information, and then suggested we put our money into a vehicle they were offering in the meantime (i.e., our down payment). We ended up going with a mortgage broker (obvious choice, people - they're consumer advocates - go with one), and got a much better deal with much better terms. We go to move the money, and they tell us at TD, "no, your money is in a 5-year GIC, you can't move it." Absolute morons. We weren't having any of it, and their branch manager, probably recognizing the incompetence of their employee, allowed us to move our money. But still, it was a very stressful moment, because we had committed to purchasing a home, and didn't think moving the money would be an issue. I haven't watched the video yet, but I wanted to share our story.
You mean to say you signed a document for a 5 yr GIC and didn't know.. you never read the paper before you took it home? You never looked on your online banking and saw 5 yr GIC? Yeah I don't blame the banker.
Mortgage brokers are salesman too… actually they are more since they are 100% commission 😂😂😂😂
I had the same thing happen. Bank talked me into putting my down payment in a 18 month GIC knowing it was for a house down payment. I ended up fighting to get it out when I was ready to buy the house . I ended up forfeiting any and all interest it earned to get it out . I always use brokers I’ve never gone to a bank for a mortgage.
hope the GIC is 5%
I enjoyed this expose on the banks. They make huge profits annually and keep raising their rates. I would rather not have to deal with them but, after a lifetime of learning, I don’t let them get away with much. When I go in to the banks, I go in for a specific purpose. When they turn on the sales pitch I politely say no thanks and walk away. I have been caught before but I’m older now and understand what they are doing.
Good stuff, and yeah - this is what happens almost everywhere.
USA here, and it happens here quite a bit, too !
I work at one of those banks and I confirm what's being said.
I feel like we are mix of a fast food system + sellers.
We make clients sign appropriate assessments, but often, customers don't have time to fully understand the product.
At my bank they want us to say loud greetings even if the person is on the phone and walk fast behind a small desk area.
When we offer a product it's seen as a good thing for the client, "we are identifying needs customers didn't know they had" 🙄
One time, a customer was asking about a credit card. While we were having this discussion, my manager popped in and tried to sell him mutual funds.
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
In other news, "water is wet".
Don't put your money in a bank. Buy the bank. Shareholders are the only ones who make money.
Exactly, the bank never loses. As a shareholder you make money.
@@whalley32one makes money buying bank shares. Particularly when purchased within a TFSA. The dividends are lucrative and can be reinvested within the TFSA.
Thank you for doing this
i have had a new credit card offer every month for last 17 months sounds like they are desperate...i refused every time.
Thanks for doing this
50 Billion divided by 35 Million is ... $1428.57 from each Canadian ... that's a month's rent!
lol ... a month's rent
A month's rent 10 years ago.
This needed information for all Canadans
It isn't just banks, it is also Credit Unions especially the bigger ones
Meridian blows
Excellent journalism and great work of exposing financial crimes at banks 🏦 👏
My confidence in banks has been shaken. Both our medical center and ourselves have been affected by instances of bank fraud and financial fraud. It appears that there was collusion within the bank, leading to the unauthorized opening of a business banking account without any documentation. This situation raises concerns about potential involvement in money laundering, which appears to benefit the bank financially. It is crucial that all Canadian banks are subject to rigorous regulation.
Yikes, what a nasty woman to be in charge of finance
gotta love that before the video begins it was a Bank AD 😂
Thank you CBC🙏
Great show 🎉❤
To be fair, I just contacted to change an account type from savings to chequing. The girl did it without any sales pitch.
I walked into a branch to get my tax documents printed. No sales pitch either. I listened to the others talk while waiting, no sales pitch.
But on the other hand, all the financial advisors are sales. 140% sales.
they floor must have been at target OR the Mgr/AMgr were out.
@@OniNoFro That's possible 🤷🏻♂️ But in order to fully grasp it, we need someone to basically open a poll on reddit or something and gather data. Twice from me vs a dozen from the market place doesn't really reflect the whole situation. I assume location also matters.
this is why we left TD every damn time you went in to do anything they hammered you with hard sales tactics.
just say thanks for the offer but i'll pass next time. works every time for me
I have worked for 3 of the 5 big Canadian Banks from 1996 to 2006. I saw a trend towards this type of sales practice starting 1999 onwards where the leads/offers were generated by the system based on certain criteria and the pressure was put on the staff (tellers/Financial Advisors) to complete the sale. Looks like the situation has gotten completely out of hand now. This is the result of a lack of competition and lack of strong oversight by the regulator. I remember when chip and pin cards were first being introduced, the Canadian Bankers Association was against introducing this technology since their accumulated losses were about CAD 800 million per year which was acceptable compared to the amount they would need to spend to change the technology. The fees being charged by Canadian Banks for basic banking services is extremely high compared to the rest of the world. Very unfortunate.
Decent reporting on issues that matter. Keep it up.
Retail Bankers have to be some of the dumbest people I've dealt with in my life
Don’t blame employees
Why is it 100.00 usd min balance in the USA ? Then 5000-8000 in cnd ?
Canadian Banks have stronger regulations when comes to liquidity. The reason banks were able to recover much faster than the US banks during the 2008 crash is because we have much better deposit vs lending ratio.
It also depends on which account. Those accounts with large minimum balances offer the most perks.
Years back when renewing mortgage, ask for a variable mortgage, advisor was pushing fixed mortgage rate. Only noticed later she put mortgage through as fixed, which cost me money over 5 yrs
Love this documentary. So relevant and important!!!🥰🥰🥰🥰🥰🥰🥰
Lmao you think this is the banks? This is anything in Canada involving sales, meet your metrics or get cut.
Phone companies, supermarkets, etc.
This happens in the USA also
Or any other country in the world 😂
@@beachrebel801seems like you haven’t visited many developed countries. Start with Singapore.
if u take out RRSP for the buyers first time home buyers plan things, should u try and pay it off (back to yourself) as quick as possible?
Yes because you are borrowing from yourself. Replacing that money quickly will provide a greater impact on your retirement
As I don't know your entire financial picture, so strictly speaking about FHBP loan, no you should NOT pay it back as quickly as possible. The whole benefit is that you can withdraw tax free and pay back without incurring taxes over 15 years. Doing otherwise is negating the reason you did so in the first place. Separately if you are in a higher tax bracket, definitely look at contributions to an RRSP, or as an example in the extreme, what if you are in a low tax bracket (like under the basic personal exemption and pay no tax - not likely) then you would not want to even pay back the loan at all.
Also, now (since 2023) there is the FHSA, so you may wish to look into this new vehicle, where you don't have to pay back ANY of it.
I recommend every Canadian to take a basic finance or personal finance class. It is worth understanding base level risks and optimization on money management.
You have great videos 🙂
Most of good information except the expert is not sounds like a “Certified financial planner” as she was having mostly bad suggestions compared to what’s mentioned in FP book. So that’s expert without knowledge, blaming to less skilful employees. CBC should have covered more employees to confirm how many gives good/bad advices. I never got upselling anything as I study info first before asking anything to bank, that’s common thing to do before getting ANYTHING 😅
Erika is back? AWESOME!
"pushing" targets are not just in the banks, telecommunication companies employes also have these "targets" that we have to "push" onto our clients
This is the new Canada
Wow
It’s really upsetting to see these banks in action, took my Grandmother in to change some cards over. The person was not a teller but a financial assistant to which she tried to sell a half dozen add ons. Even after telling this bank employee that she can barely make ends meet.. we do not want any add ons Period!
To which this scum bag proceeds to call my grandmother 3-5 times to pressure her into later with out my council. Absolutely the worse garbage , here I was thinking China, India scammers are the worse.
"Millions of Canadians" - that's something we hear everyday from JT.
I worked 5 years for RBC as an Account Manager and I left in 2008. Never working for a bank again.
This has been going on for 30 years.
Don't hit your monthly or quarterly target and you end up on performance review. Still can't hit your target then they now have just cause to fire you.
Hit your or exceed your targets and they increase your new performance targets by 10-20% year after year so that you have something to strive for.
Many targets are also based on referral to other departments but only count if those people can sell products to customers. If they can't close a product with the customer you could end up on performance review for not making sure that customer was going to buy something since they now consider that referral unqualified.
The financial planner you hired for your program is all 100% negative about the credit cards, limit increases and lines of credit, at the end of the day it's the person's decision whether or not they over-spend money they don't have. If the person use the credit cards responsibly and just pay it off before due date, limit increases that doesn't require credit check is good for building credit.
At the end of the day, it's your responsibility to manage your own money and how you spend it. Anything can be harmful if used irresponsibly.
Switched over to a credit union and I couldn't be happier
I wish I could've watched your video earlier. I was convinced by an advisor to get mutual funds. I ended up losing some money.
Former bank employee for several banks....banks will sell sell sell, nothing to do with caring about people financial interest which is stated on the disclosure. Banks are super cheap, they dont train their employees. Look at job postings, they are always hiring. They have to push push push. All you need is a Mutual fund course IFIC to be called a sales advisor.
I kind of disagree with CBC . First , increase customers credit limit isn’t something wrong. Instead it helps build up the credit score. People who lack self control are always going to borrow and spend . I am a strong believe that people should be responsible for his own action.
Then be honest and explain that reasoning rather than upsell. Don't offer it if it is not in the best interest of the client eg they already have too much debt. Selling the appearance of freedom to people who lack self control does not help them regain control of their finances. Also it must be done with the customers consent or it is illegal (I intentionally have a low credit limit on my overseas travel credit cards.)
Finally someone with a brain,
The media doesn't show us the full conversation, and YES to build a credit or save your credit its a good thing
"credit score"... LOL!
@@kimchristensen2175you’re barking up the wrong tree if you are against credit scores altogether.
@@nickfanzoI just think people's obsession with credit scores and debt spending is ridiculous. That's all. Live within your means people!
The greed is sickening for sure but it's also time the general public develops some financial sense. Don't spend when u don't have and save some when u have. Is that that difficult? 🤔 and banks are businesses, they taking advantage of someone passing is of course sick but when a society is expecting compassion from a banker we have a deeper problem😮 sorry don't mean to be rude or ruthless and I know my banker was probably not happy when I cancelled my mutual fund investment yesterday...2% return over 3 years..ridiculous! And non redeemable GIC's charge a penalty so its not just about losing interest if withdrawn before time?...the bottom line is its a shared responsibility. If the banker is pushing for sales an individual has a right to say no. And govt needs to regulate to stop half truths or falsehoods...an ideal world 🙄
The issue is that advisors aren't fiduciaries. They are not obligated to work in your best interest. First question when having someone work with your money should be "are you a fiduciary?"
Having 650 credit score do you think one go to bank deposit 100 bank will offer credit limit increase of $8000?
We are a banking oligopoly in Canada, where the market boundaries are split between designated players who offer almost identical services, thus unable to get a leg up over the competition with cheaper or better products, while being listed at the stock exchange thus needing to drive value for its stockholders. The only way to do this considering these market constraints is to commit the fraud we witnessed in this video.
And no I am not taking the banks sides. I am just pointing out why this happens even when the banks have no fear about surviving any market challenges, but cannot survive their own impulses for greed ...