Mis-Selling of Store Cards

NorBlue

Two members of my family are involved in retail sales in major department stores. Both of them are required as part of their employment to sell store cards to customers and they are given weekly targets to achieve. Given that they receive no training in this and that they are financially incentivised to make the targets they are set, is this a case of mis-selling by the stores concerned and should the FSA be interested in this type of behaviour?

I work for Citizens Advice and we receive no complaints about such arrangements presumably because the customers are unaware of it and the staff don't want to upset the management. This however does not make it ethical or something that should not be brought to the attention of the authorities. Does anyone have any views and, Martin, would you raise it with the FSA?

Fossil_2

When I used to work part-time in JJB Sports years ago, the shop floor staff had to sell store cards (Duet) to customers.. target was at least one a day that you worked. Didn't like doing it, but had no choice.. otherwise you'd lose your job.. no financial incentives as it was part of the job. Didn't know how I lasted almost two years in that place

Off Topic:

The staff selling trainers had to sell shoe care products, and target was 50% or over.. so you tried to sell at least one shoe care product per pair of trainers.

Back On Topic:

The companies have to satisfy their shareholders in the end..

mrsw

Interested to read this thread. I have just written to one leading department store about being mis-sold a card and the fact that staff have no training in what they are selling.

dabbit

I went in BHS the other day and was asked if I wanted their store card to which I replied 'No' - as I already have one and don't wish to use it any more and had in fact cut the card up. The sales assistant then proceeded they could get me another card.I explained I didn't want it, but they carried on trying to persuade me until the queue got too long.

As someone who does owe a lot of money and trying to get it off, I was disgusted to think had I been more vulnerable I might well have succumbed to the temptation. Surely this isn't right, and should be blocked immediately.

rchddap1

That's not good....I probably would have shouted at the top of my voice (so everyone in the store could hear) that I didn't want their card as the interest rate is terrible and that their customers would be far better off with a 0%, or % for life credit card. And then watch their faces.

*Louise*

rchddap1 wrote:

That's not good....I probably would have shouted at the top of my voice (so everyone in the store could hear) that I didn't want their card as the interest rate is terrible and that their customers would be far better off with a 0%, or % for life credit card. And then watch their faces.

LOL......that sounds like a good solution.

The interest on those cards is shocking...that's why I've never had one

Debras_Angel

Play them at their own game.

One thing you can do with these cards is take it at the time to get the 10% off, that's what most of them offer. Good if you are buying a substantial amount and then when the card comes through pay it off immediately and cut up the card.

The incentives are huge for the staff and I've known some of them make a lot of money/holidays etc out of getting customers to sign up. I know as I worked for a major high st company for many years and staff had to sell as part of the job as mentioned in previous posts.

They did train the staff quite well on how to get customers to sign up, but I do still think it is unethical to target young people as it was a young fashion brand.

There were many times when a parent would complain to the company re there son or duaghter being given a credit card.

Debs

tomstickland

presumably because the customers are unaware of it

I've always assumed that they have some sort of incentive to do it. I had one or two cards for a 10% discount and then paid them off and never used them.

YorkshireBoy

Debras_Angel wrote:

Play them at their own game.

One thing you can do with these cards is take it at the time to get the 10% off, that's what most of them offer. Good if you are buying a substantial amount and then when the card comes through pay it off immediately and cut up the card.

The danger with doing this is that your 'total available credit' builds up on your credit file. At some time in the future it may be sufficiently high enough to prevent you obtaining credit when you genuinely need it.

When you've exploited an opening offer such as this, you need to properly close the card, not just simply 'pay it off and cut it up'. Ask the provider to mark the account as settled with the CRA's as well.

jimmyjim_uk

YorkshireBoy wrote:

When you've exploited an opening offer such as this, you need to properly close the card, not just simply 'pay it off and cut it up'. Ask the provider to mark the account as settled with the CRA's as well.

Echo this comment. I had a Duet card that I 'cut up' and didn't use again. Even after 3 years the account was still active with available credit of £1555. I have since wrote to Creation Financial Services and have had the account marked as settled on my credit file.

Debras_Angel

YorkshireBoy wrote:

The danger with doing this is that your 'total available credit' builds up on your credit file. At some time in the future it may be sufficiently high enough to prevent you obtaining credit when you genuinely need it.

When you've exploited an opening offer such as this, you need to properly close the card, not just simply 'pay it off and cut it up'. Ask the provider to mark the account as settled with the CRA's as well.

Thanks that ia a Good point Yorkshire Boy.

Debs