Report Uncovers 'Rife' Levels of Poor Advice
A undercover report by consumer watchdog Which? uncovers 'rife' levels of poor advice and questionable sales tactics
4th June 2004
An undercover investigation by consumer association Which? has revealed that poor financial advice and questionable sales tactics are 'rife' in the mortgage and insurance industry.
Researchers posed as first-time buyers at 39 banks, building societies and estate agents, and found that only one of the 39 gave 'acceptable' advice.
Of the other 38, 23 recommended unneccessary life insurance when the 'clients' already had sufficient cover, 22 recommended critical illness cover without explaining exactly what it was and what it covered, and some even used 'shock tactics' in an attempt to scare the researchers into taking out extra insurance.
Malcolm Coles, editor of Which?, said:
'Our investigation exposes serious problems with the way advisers work... We're glad a tightening up of selling practices is on the horizon, but we're not convinced it'll be enough. We think the FSA needs to do its own mystery shopping, and fine any company that breaks the rules.'
Read More: Which?
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