Six ways banks are allowed to bully you

Watch out for these six sneaky bullying tactics!

Several years ago, I used to work as a cashier at Halifax. I can’t say I enjoyed the role much. After all, most of my day seemed to involve being verbally abused by customers about matters I had no control over.

However, I also really didn’t enjoy the prospect of continually asking every single customer whether they would like to apply for a mortgage with us, or whether they’d like to come in for a savings review, simply to try and hit my targets.

But while I felt quite uncomfortable doing it, the customer also invariably felt a little awkward – if not a little angry.

Interestingly, recent research from MyVoucherCodes.co.uk has revealed that 34% of people feel pressured into signing up to extra services offered to them by their bank – which are either unnecessary or can end up leaving them in debt.

In fact, 11% of those asked said they were now in debt due to an extra service their bank had offered them, and 23% regretted signing up to an extra service.

So here, I’m going to reveal six ways in which your bank may try to bully you into signing up for something you never even wanted.

Over the counter

As I’ve just mentioned, whenever you go into a bank and head over to the counter, the cashier is bound to try and sell you something. For example:

• ‘Do you have a mortgage with us? No? Well, would you like one?’
• ‘Did you know that you qualify for a £10,000 personal loan with us?’
• ‘Have you heard about our new fabulous interest-free credit card?’

In other words, would you like to get into more debt? Because we’re more than happy to help you!

As I’ve had to do it myself to earn a living, I try to remain patient, but I now understand how frustrating it is for customers.

Of course, if you’re financially savvy, it’s easy to turn down these offers and simply walk away. But if you’re struggling with your finances and you’re suddenly offered a personal loan, it can be highly tempting to accept there and then. And as a result, you could find yourself on a very high, uncompetitive interest rate, sliding further into debt.

Don't let them get away with it! If you're tempted by what the cashier offers you, make a note of the details of the deal, then go home and shop around for the most competitive quote. You could save hundreds - if not thousands - of pounds that way. 

On the telephone

Similarly, if you ever need to give your bank a ring, no matter what you’re actually calling about, there’s a good chance you’ll get the sales pitch over the phone as well. So keep your wits about you and don’t get sucked in! Don't be afraid to rudely hang up if they won't take no for an answer.

Change in circumstances

If you’ve ever had to go into your bank to inform them of a change of address or a change of name because you’ve got married, you may find your bank takes advantage of this to ask you if you’d like to take out a home insurance policy or open a joint current account or joint savings account.

Similarly, if you've just taken out a mortgage with your bank to buy your new home, you may also find yourself being told to take out their mortgage protection policy and life insurance policy.

Of course, if these are financial products you’ve been considering applying for anyway, you might be tempted to say yes. But even if they’re not, you may be persuaded to sign up. And ultimately you could end up with a deal that actually isn’t the best one for you.

Online banking

One thing that really drives me mad when I log onto my online banking account is the fact that often the first thing I see is an advertisement for a new savings account or credit card. And I have to click a separate button to actually move onto my accounts page.

Banks do this because they know it’s a great way of enticing you in. With savings rates so low right now, if you suddenly see an offer for a savings account with what looks like an attractive rate of interest, you might be tempted to find out more. But often, if you read the small print, you’ll find out the account really isn’t what you wanted and actually it’s riddled with catches - by which point, it may be too late.

One way to avoid this is to register with the lovemoney.com online banking service. This service allows you to see all of your transactions on all your cards and accounts on one page, using one login. So it’s a really easy way to keep track of all of your accounts from a range of banks without worrying about annoying advertisements getting in the way!

Junk mail

Of course, even if you don’t bank online, banks have other ways to get the message across. How many times have I come home to find a pile of junk mail from Halifax on my doorstep telling me about a credit card I could have, or a great home insurance deal?

This is just another way of trying to get you to sign up to something you don’t need. So I’m afraid, all of my junk mail goes straight into the recycling bin (providing it has no personal details on of course – in which case, it goes in the shredder!).

In an emergency

Imagine spotting an unusual transaction on your bank statement. You don’t remember spending that £70 and you’re pretty sure you didn’t. So you decide to phone up your bank to enquire about it.

Your bank tells you that you’ve been a victim of fraud – someone has gained access to your current account. Luckily, your bank is going to refund you the money, but before they can do that, you’re transferred over to their ID theft department. And it’s here that you’re told the dangers of not having ID theft insurance.

Personally, I think this is a really cruel way of trying to get you to sign up for something. Banks know that at this particular point in time, you’re quite vulnerable. After all, someone has just managed to get their hands on your hard-earned cash.

As a result, when the person on the other end of the phone starts to tell you why you should have ID theft insurance in place, you’re far more likely to nod, agree and simply go along with it all. Next thing you know, you’re forking out for an insurance policy you never really wanted – or needed for that matter.

In my opinion, ID theft insurance is a complete rip-off. Typically it will set you back around £60 to £80 a year. However, while it claims to be protecting you, it doesn’t actually provide you with any compensation for fraudulent transactions if you're a victim of ID theft. So I really can’t see what the point of it is.

If you do want some kind of cover, I think protective registration is a better option. It can be obtained separately through CIFAS at a minimal cost of £14.10 a year. You can find out more about this, as well as ID theft insurance, in Avoid this expensive rip-off. And find out about protecting yourself in 10 ways to protect yourself against ID fraud.

So whenever your bank tries to offer you a new deal, however good it sounds, always take a step back and consider whether it’s something you really need. If you decide it is, don’t simply sign up there and then. Take the time to do your own research and shop around to see if you can find a better deal elsewhere. And don’t forget to check out the lovemoney.com comparison centres for help!

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