Professional Insurance Brokers Association chief executive Diarmuid Kelly has spoken out about some sharp practice by the banks which is said to be 'widespread' at the moment.
Banks are examining their customers direct debits in an attempt to up sell them on their own life assurance and other products.
It seems they will look through the list of customers direct debits and if they notice payments to life assurance companies they will contact them to try and get them to change their cover to their own providers.
While people should regularly ensure that they are getting value for money from the financial products they have, it must be remembered that the banks will only be able to quote customers on products from life companies either owned by the bank, or acting as 'tied agents' to the bank. A independent financial advisor/broker will be able to quote you from a number of life companies, ensuring that you are getting proper advice on the products you choose. Strictly speaking cheapest is not always best, everyones personal needs are different and you should ensure that the advice you get takes the whole market into account and not just a single life company.
In retort the Irish Banking Federation have advised that the practice is not in breech of the Consumer protection code or data protection legislation.
FS
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