Upselling essentially means that your bank may offer you a higher end product like a ‘premium savings account’ rather than one you have or request like a ’basic savings account’. If the premium account, with fees, has features you need, this may work for you, if not, fees are funds lost to you.
Bank upselling is something that most consumers might not think about, but should. According to news reports, the five biggest banks in Canada are encouraged to upsell to customers. Whether you believe that your bank will try upselling to you or not, you must at least be aware and think about any possible extra fees involved using one type of account or service versus another.
Bank employees in Edmonton and region, as in the rest of the country, must meet assigned sales targets as per their directives. Sometimes, these upsell options with extra fees do not help the consumer. Other times they may be among the choices for Albertans. It depends on your requirements, so be sure to ask about fees related to any and all of your banking needs. The less fees, the more savings for you.
Tips for Handling Banking Upsells and Avoiding Additional Debt in Edmonton
Banking upsells come in many forms, including credit cards, loans, new bank accounts, and so forth. Before accepting an upsell, there are a few facts to consider:
- See What the Financial Watchdog Recommends – The Government of Canada’s Financial Consumer Agency (FCAC) has been investigating bank upsell practices, and they are working on new legislation that might stop these practices altogether. Before accepting an upsell, review your rights to consent carefully. Banks are not allowed to engage in forced purchases; meaning they cannot coerce you. However, that does not mean the bank employee could not offer an upsell to you.
- Read the Details Carefully – According to the FCAC, you have the right to review a full description of the product or service, read all terms, and receive information on how to cancel the product or service. Also, any related fees and how those fees are calculated must be presented to you before consenting to the additional product.
- Consider What You Need (and What You Do Not Need) – A credit card with an excellent introductory rate may be a bait and switch move. Banks, and other partner businesses, want you to accept the credit card, transfer balances to it, and enjoy the introductory low-interest rate. Why? Because they know that many consumers will not pay it off. Once the introductory period is over, you are required to pay the new, high interest charge that often compounds from the date of the initial transfer. Before opening any account or taking up a new offer from your bank, ask yourself about the consequences, how much you can afford, and if it will benefit you in the long run.
Edmonton Licensed Insolvency Trustees Can Help
If you are from the Edmonton region or Northern Alberta and are in over your head in debt or are in a panic, a Licensed Insolvency Trustee can help you sort out available debt solutions.
A Trustee will assess your current debt load, income, and mitigating circumstances and can present you with options appropriate to resolving your situation.
Schedule a free initial consultation with a Licensed Insolvency Trustee at A.C. Waring & Associates Inc. Call our Edmonton office at 780-424-9944 or toll-free at 1-800-463-3328 with your questions and concerns regarding your debts. We serve the Central and Northern Alberta Region.