Appointment required to open saving account?

opinions4u

Jonbvn wrote: »

I agree to a point. However, some of the banks/BS also use it as an opportunity to try and flog some of their rubbish products.

Which is inevitable.

The FSA is a truly useless regulator that benefits nobody.

apt

Jonbvn wrote: »

I agree to a point. However, some of the banks/BS also use it as an opportunity to try and flog some of their rubbish products.

I've opened 3 or 4 Northern Rock savings accounts by appointment and they have never tried to sell me anything apart from the account I told them I wanted to open.

sphrp2

How long has the FSA being demanding this? I've never encountered it before but was required to have an appointment to open a cash ISA at A&L. There was a TWO WEEK wait for this appointment, when I'm not getting the interest! During the appt, I asked for the product I wanted and wasn't offered or advised on any other (great for me, but surely not what the FSA are after, according to opinions4u).

I sat with a lady who copied my details from one account to the new one for about 30 minutes. She was very pleasant, but what a waste of everyone's time!

nilrem_2

sphrp2 wrote: »

How long has the FSA being demanding this? I've never encountered it before but was required to have an appointment to open a cash ISA at A&L. There was a TWO WEEK wait for this appointment, when I'm not getting the interest! During the appt, I asked for the product I wanted and wasn't offered or advised on any other (great for me, but surely not what the FSA are after, according to opinions4u).

I sat with a lady who copied my details from one account to the new one for about 30 minutes. She was very pleasant, but what a waste of everyone's time!

Absolutely.
I have no issue with them offering me an interview so that they can 'offer' me the saving plan that 'they' think is best for my needs but that should not stop them being able to open an account without such an interview if the customer declines it and is happy with their selection.

Other places that I save with do offer me a chance to have a chat with someone first for example Chelsea and Nationwide but neither have insisted before opening an account.

missile

opinions4u wrote: »

The FSA require account providers to demonstrate that they have either given face to face customers advice on which account to have, or have ensured that the appropriate choice of products for a customer's needs have been explained.

Failure to do so could leave the bank or building society open to claims of mis-selling and, given the regulatory regime, the FOS would come down on the customer's side if there was no evidence of compliance with this requirement.

The only way to identify the customer's savings needs properly is to talk to them and ask them some questions. Without doing this, how would they know that you are opening the right account for your circumstances?

While it would be nice if they could see every customer there and then, it is inevitable that this wouldn't always be possible at busy times or when a number of staff are on holiday, ill, training courses etc.

Personally I see it as over-regulation that doesn't always benefit the customer. But the reality is, and some of the posts on this forum support the point, that most people in this country don't understand different types of savings accounts and the FSA believe that we should all be nannied as a result.

Where did you get that information? Can you point me to the appropriate FSA regulation? Banks may misquote FSA regulations and use it as an excuse but IMHO this is clearly not the issue here.

I have opened up many savings accounts on line. Are you really suggesting RBS, Halifax, NS&I and many others leave themselves open to "claims of mis-selling" savings accounts?

FlareStar

Hi everyone!...this is a very interesting post and was thinking about this this morning when i tried to open an account. went into a bank.....it was all quiet and two advisors standing at the front desk with coffee in hand talking (fair enough there were only four customers in there at the time and all queing for cashiers)...so i thought it would a simple 'ask a few questions, fill a few forms, show ID and be on my way' that would have been to simple!!!! instead i was told i need an appointment and that no-one was a available.....:undecided

opinions4u wrote: »

The FSA require account providers to demonstrate that they have either given face to face customers advice on which account to have, or have ensured that the appropriate choice of products for a customer's needs have been explained.

Failure to do so could leave the bank or building society open to claims of mis-selling and, given the regulatory regime, the FOS would come down on the customer's side if there was no evidence of compliance with this requirement.

The only way to identify the customer's savings needs properly is to talk to them and ask them some questions. Without doing this, how would they know that you are opening the right account for your circumstances?QUOTE]


how would this apply to those who open accounts online?

opinions4u

missile wrote: »

Where did you get that information?

From a former colleague who still works in the industry.

Can you point me to the appropriate FSA regulation?

No, but I'm sure it exists.

Banks may misquote FSA regulations and use it as an excuse but IMHO this is clearly not the issue here.

The FSA also leave banks to interpret regulations in their own way. But they do have to show the regulator how they comply.

I have opened up many savings accounts on line. Are you really suggesting RBS, Halifax, NS&I and many others leave themselves open to "claims of mis-selling" savings accounts?

FlareStar wrote: »

how would this apply to those who open accounts online?

Online sales are regulated in a different way, as are telephone sales.

oramgepekoe

Was made to book an appointment recently to open a children's account at Northern Rock. The appointment took 30 minutes despite me having already filled in the application form and written the cheque. I was asked if I had an ISA this year and who my mortgage was with. Can't see how that's relevent to opening a children's account.

Geoffo_M

ses6jwg wrote: »

I am one of these advisers.

Firstly, we are obligated in our capacity as advisers to ask certain questions in order to offer accounts and products which are suitable i.e. not offering a brand new ISA to somebody who has already opened one.

There is a lot of confusion out there not only about ISAs but credit cards and other products as well. Most people on here are quite clued up, so I can see why they might see such an appointment as a hindrance rather than beneficial.

There is an element of sales involved in these appointments, it's pointless to deny it, however there are some points here to clear up:

1) We have to demonstrate that the customer has a need for the product (e.g. booking a 92 year old in to see the financial advisor to discuss investments would arguably be seen as miselling, similarly for upgrading people to fee charging accounts without demonstrating a need for the benefits)

2) Some of the sales element does involve asking certain probing questions about income, other accounts etc. Believe it or not this does actually help people. I interviewed a lady recently who wanted to open up a current account for her daughter. I found out that she had £2000 worth of credit card debt on a credit card paying 34.9% APR! So I discussed our credit card which would give her no fee to transfer the balance and 0% on the balance for 13 months, and how much extra this would put in her pocket each year. We then set her up with a regular savings account on what she was saving on the interest payments.

You must remember that there are bad advisors and good advisers.

I thought the FSA decreed that bank/building society employees weren't allowed to call themselves 'advisors' any more, because it misled customers into thinking they were IFA's - when they were anything but independant

deedee71

I went into Lloyds TSB recently on a Saturday morning. There were 7 members of staff and one customer. The only person who was trained to open an account was dealing with the customer - so I was offered an appointment for 2 weeks time.

As I was actually doing a mystery shop on the branch I re-iterated several times on the report what a waste it was to have 6 staff members doing nothing and perhaps more of them could be trained to do what customers need!