The Consumer Unity and Trust Society (CUTS) India has found that as much as 67% of those who avail of financial services feel that sales incentives and targets associated with financial products result in mis-selling or other malpractices.

The results of a survey conducted by the organization showed that 55% of the target group were also unaware that they could avail of redress systems in case they felt that they were victims of mis-selling. On the other hand, the study found that 76.3% of bank workers felt under pressure because of the sales targets set. As much as 42% of them admitted to putting in more efforts to selling products that offer more incentives.

George Cheriyan, Director of CUTS International said “Proper enforcement of the Right to Suitability (established under the Reserve Bank of India’s (RBI) Charter on Consumer Rights) is needed to tackle mis-selling of financial products and to ensure that consumers get the products that meet their needs”.

The survey was conducted by CUTS, a member of Consumers International (CI) as part of CUTS International’s project, with support from CI and funding by UK consumer organisation Which? to achieve better environments for consumers to do their financial planning.

Source: http://www.consumersinternational.org


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