Every now and then when I visit a bank branch, bankers try to sell me on products like credit cards and investment services. The last example of this was when I went to Bank of America to close my checking account. The banker tried to convince me to sign up for their credit card. Another example was when I went to PNC to close a matured CD. The PNC banker referred me to their investment services division. As I explained last year, you should be very careful about CD alternatives being pushed by bankers.
Why are bankers so pushy? It’s not only the commissions that they receive from selling products, but it can also be pressure from their management. That’s what the LA Times revealed in its investigation. On Sunday the LA Times published the article, Wells Fargo's pressure-cooker sales culture comes at a cost. Thanks to DA member me1004 for posting on this in the forum. The article gives many examples of some of the alleged abuses by Wells Fargo bankers. The following excerpt provides some examples:
To meet quotas, employees have opened unneeded accounts for customers, ordered credit cards without customers' permission and forged client signatures on paperwork. Some employees begged family members to open ghost accounts.
This shows why you have to be careful when you talk with bankers. Not only do you have to be careful not to be pushed into products that are bad deals, but you have to be careful that you’re not signed up for products without your permission.
As the article shows, bankers can be under high pressure to sell products that may not be in your best interest. In fact, some of these products like investment products, could cost you a lot of money. I suppose the article could make you more sympathetic for your banker. If he or she is very nice and has gone the extra mile to help you in the past, you might want to give in to their offers. I know someone who did this with a SunTrust Investment Services advisor. That’s one more reason to avoid branches and to bank online.
What products has your banker tried to sell to you? How much pressure do you think they get from their management to sell? Have you ever given into their offers? Or have you been signed up without your permission?