Misselling is a term meaning the sale of services that are not adapted to the client’s needs. This phenomenon occurs when a service that is not needed by a person is sold, i.e., for a non-bank loan, unemployment insurance is sold to a retired person. It is therefore known to the seller that this type of insurance will not be useful for this particular customer, however the seller presents the product in such a way that an unconscious customer decides to buy it.
Reasons for practicing misselling
This type of situation comes from the desire to make a profit, because sellers receive commissions on the sale of additional products, such as insurance for credit or online loans. It also happens that a loan company, insurance company or bank impose on its employees the production of certain standards, i.e. the sale of a certain number of services. Sellers, therefore, under pressure, offer customers solutions not adapted to their needs. The problem is also that consumers generally do not read contracts, believing only the words of sellers. We often do not know our rights, we are not aware that we have the right to withdraw from a given contract and file a complaint.
How to guard against misselling
None of us want to pay for services that we don’t need. So let’s make informed decisions. Unfortunately, many financial and insurance products are quite complicated – contracts consist of a dozen or even dozens of pages written in legal jargon, the form of which is completely inaccessible to the average consumer. So the solution is to browse forums, credit comparison websites and portals specializing in describing products and services and explaining their purpose, just like Trueier.Net
The amendment to the Act on competition and consumer protection, which came into force on April 17, introduces a ban on misselling. This is to ensure consumer safety by forcing sellers to choose products rationally. What’s more, the Office of Competition and Consumer Protection gained a new opportunity to control how contracts are concluded and to properly inform consumers about the products they sell. In order to carry out these inspections, KISAW has the right to use the ‘secret client’ institution.
From 2016, the Financial Ombudsman also exercised custody over the proper functioning of the financial market. This institution was created after transforming the Insurance Ombudsman, thereby expanding the scope of his activities to the clients of all financial institutions.
Remember not to make financial decisions on impulse. You have the right to read the terms of the contract peacefully.