Do you trust the banks to put service above profit?
A CBC investigation into high pressure tactics by banks to sell services has resulted in streams of e-mail from employees of all the major banks saying it's common practice. Where do you draw the line between selling needed services and chasing profits? With guest host Susan McReynolds.
More from this episode:
CBC News' Go Public found out this past week that employees from all five major banks feel they have been pressured into a hard-sell approach that ignores the real needs of their customers, and maybe even breaks the law.
We know that all businesses work hard to sell what they offer, but there is an expectation that some businesses are held to a higher standard... and bankers, doctors, and dentists to name just three, are among them. We might assume that they work for the best interests of their clients and put service ahead of profit. But do they?
The banks build on this expectation by advertising trust and good old-fashioned service. Canadians were proud of their banks during the 2008 recession when financial institutions around the world were going under, Canadian banks were looked to as examples of stability and prudence.
Strong profitable banks are good for Canadians... but have they allowed their drive for profits to overshadow their responsibility to provide service?
Our question: Do you trust the banks to put service above profit? (Should you trust any business to do that?
Guests
Erica Johnson
Senior Investigative Reporter with Go Public
Twitter: @cbcErica
David Lewis
Assistant professor at Ryerson University's Ted Rogers School of Management
John Lawford
Executive Director and General Counsel for the Public Interest Advocacy Centre, a non-profit organization that provides legal and research services on behalf of consumer interests.
Twitter: @CanadaPIAC
What we're reading
CBC.ca
- 'We are all doing it': Employees at Canada's 5 big banks speak out about pressure to dupe customers
- Consumer watchdog launches bank review in wake of CBC stories
- Despite the ads begging for your trust, banks are not your mom: Don Pittis
- TD Bank on defensive after CBC stories, stock plunge
- 'We do it because our jobs are at stake': TD bank employees admit to breaking the law for fear of being fired
- Is your bank ripping you off? Would you even know?
- Controversial TD tactics show need for consumer code, says advocacy group
- Undercover investigation finds big markups, confusing charges and pushy tactics at major funeral home chain
- Consumer protection groups reveal top 10 scams targeting Canadians
- 4 money-saving reasons you should check your bank statements
National Post
- Consumer banking watchdog to review consent practices after report of aggressive sales tactics at TD
- Banking watchdog says TD Bank allegations raise 'serious concerns,' will monitor industry closely
- TD downgraded by analysts on reports of aggressive employee sales tactics
- TD shares drop most in 8 years after CBC report on sales practices sparks fears of 'a Wells Fargo moment'
- Big Six banks profits top $10.5B for first quarter after strong results from TD
Globe and Mail
- Federal watchdog to review banks' sales tactics (subscriber only)
- Have a complaint about your bank? Here's where to go (subscriber only)
- $7-billion wiped out in one day: Why TD stock took its sharpest drop since the financial crisis (subscriber only)
- Buying TD shares on the dip? Better think twice, say market pros (subscriber only)
Toronto Star