We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Banks are letting the consumers down
Mr.Mulla
Posts: 448 Forumite
The building societies and banks in the UK are letting customers down more, and more each year. They really are not able to dish out trust worthy advice on how to invest your hard earned cash. The result was part of an alarming survey conducted by Which? In fact it left reporters questioning if it was worth using UK banks and building societies for financial advice at all, given the fact that they gave such terrible advice.
In a secret investigation, the Which? researchers found that only 4 out of a terrible 37 banks and building societies that were visited were able to offer out good advice to investigators when it came to investing a cash lump sum, and to be frank the figure is a joke.
The biggest scandal revealed in the research was that banks that the government had helped out FAILED! Halifax, and Lloyds TSB didn’t prove to be better than anyone else. In fact they offered up dodgy advice on investments, and simply had not learned from the recession at all.
The other thirty three banks that were investigated by Which? and failed, were found to recommend products without talking through the risks, or simply because they themselves didn’t have a clue about the info they were dishing out.
Out of 37 advisors inside the banks, only 21 suggested the reporters put some of their cash into capital guaranteed products, and eight out of them said that the products didn’t contain any risks, which couldn’t have been more wrong if they had tried! Six of the ‘advisors’ even went as far as to recommend opening up an investment bond, although they didn’t talk through the risks of the extremely complex product. The very banks and building societies that we put our trust into, when it comes to all things financial simply didn’t have a clue about what they were doing.
A further 14 advisors, simply forgot to mention about the Financial Compensation Scheme, and only one of them advised a which? researcher to divide savings with 2 investments, to prevent going over the UK’s 50, 000 pound limit. The advice handed out was totally shoddy, and unprofessional.
So next time you are looking at getting an investment, perhaps you should do your own research! The banks and building societies are but novice it would seem.
In a secret investigation, the Which? researchers found that only 4 out of a terrible 37 banks and building societies that were visited were able to offer out good advice to investigators when it came to investing a cash lump sum, and to be frank the figure is a joke.
The biggest scandal revealed in the research was that banks that the government had helped out FAILED! Halifax, and Lloyds TSB didn’t prove to be better than anyone else. In fact they offered up dodgy advice on investments, and simply had not learned from the recession at all.
The other thirty three banks that were investigated by Which? and failed, were found to recommend products without talking through the risks, or simply because they themselves didn’t have a clue about the info they were dishing out.
Out of 37 advisors inside the banks, only 21 suggested the reporters put some of their cash into capital guaranteed products, and eight out of them said that the products didn’t contain any risks, which couldn’t have been more wrong if they had tried! Six of the ‘advisors’ even went as far as to recommend opening up an investment bond, although they didn’t talk through the risks of the extremely complex product. The very banks and building societies that we put our trust into, when it comes to all things financial simply didn’t have a clue about what they were doing.
A further 14 advisors, simply forgot to mention about the Financial Compensation Scheme, and only one of them advised a which? researcher to divide savings with 2 investments, to prevent going over the UK’s 50, 000 pound limit. The advice handed out was totally shoddy, and unprofessional.
So next time you are looking at getting an investment, perhaps you should do your own research! The banks and building societies are but novice it would seem.
Mr. Mulla
0
Comments
-
And? The OP is merely bringing it to our attention, is there a problem?Copied and pasted from here.Since when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.0 -
A bit odd to simply copy and paste a whole article like that but let's address the points raised anyway.
Since they are all tied to one provider of investment products (usually their own company), why is this a shock?The building societies and banks in the UK are letting customers down more, and more each year. They really are not able to dish out trust worthy advice on how to invest your hard earned cash.
I think it's widely accepted on this forum that use of an IFA for investment advice is the best way forwards.The result was part of an alarming survey conducted by Which? In fact it left reporters questioning if it was worth using UK banks and building societies for financial advice at all, given the fact that they gave such terrible advice.
I haven't read the whole report. But it is quite possible that good advice was provided from a poor choice of products.In a secret investigation, the Which? researchers found that only 4 out of a terrible 37 banks and building societies that were visited were able to offer out good advice to investigators when it came to investing a cash lump sum, and to be frank the figure is a joke.
Why on earth would they be.The biggest scandal revealed in the research was that banks that the government had helped out FAILED! Halifax, and Lloyds TSB didn’t prove to be better than anyone else.
1) They are undergoing the biggest merger in British banking history which will divert focus and resource.
2) I would guess that just about every staff member in LTSB/Halifax feels massively let down by the great and good that lead them (or used to lead them).
3) If the finger of HM Government is involved, it will invariably screw things up.
I really don't know why anybody would expect partial government ownership to suddenly improve the quality of a bank.
Why would they recommend capital guaranteed products if they have ensured that the client has savings accounts? What is so good about capital guaranteed?Out of 37 advisors inside the banks, only 21 suggested the reporters put some of their cash into capital guaranteed products, and eight out of them said that the products didn’t contain any risks, which couldn’t have been more wrong if they had tried!
Which is poor. But would those risks have been properly covered prior to the customer signing on the dotted line? We don't know.Six of the ‘advisors’ even went as far as to recommend opening up an investment bond, although they didn’t talk through the risks of the extremely complex product.
There is no requirement to suggest splitting funds between providers to stay under FSCS limits.A further 14 advisors, simply forgot to mention about the Financial Compensation Scheme, and only one of them advised a which? researcher to divide savings with 2 investments, to prevent going over the UK’s 50, 000 pound limit.0 -
I was merely attributing the article to the proper source. However, as you mention it, it is a problem since MSE can be held liable for copyright infringement. That's why the following appears in the forum rules FAQ...And? The OP is merely bringing it to our attention, is there a problem?
http://www.moneysavingexpert.com/site/forum-faqsWe ask forum users not to copy long text from other publications/websites as it may breach their copyright. If you want to let people know about something you saw or read elsewhere please use short quotes and state where you got them from, preferably by giving a link to the article. In terms of our copyright, you can post things you've posted here, on other sites, but not posts by other forum users.0 -
Fair enough, I was not aware that such a rule existed.;)I was merely attributing the article to the proper source. However, as you mention it, it is a problem since MSE can be held liable for copyright infringement. That's why the following appears in the forum rules FAQ...
http://www.moneysavingexpert.com/site/forum-faqsSince when has the world of computer software design been about what people want? This is a simple question of evolution. The day is quickly coming when every knee will bow down to a silicon fist, and you will all beg your binary gods for mercy.0 -
I was merely attributing the article to the proper source. However, as you mention it, it is a problem since MSE can be held liable for copyright infringement. That's why the following appears in the forum rules FAQ...
http://www.moneysavingexpert.com/site/forum-faqs
Sorry about that too, I wasn't aware. I forgot to put the link where I got the article.
Mr. Mulla0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards