Friday, July 13, 2007

Questionable marketing practice

I read a news report about the following marketing practice:

* the bank sends a letter to offer you a credit line
* if you do not want it, you have to tell the bank
* if you do not opt out, the bank offers it to you
* the charge is waived for the first year
* in subsequent years, the bank automatically add the charge to your account
* it is quite a hassle to remove this unwanted facility

I hope that the authority can act strongly to stop this practice. Here are some of the difficulties faced by the consumer:

* the product brochure sent by the bank is complicated (not easy for consumer to understand)
* the terms may be unfair to the consumer (as it is written on a one-sided basis)
* the consumer may overlook the charge on this statement (for something that is not needed).

I hope that businesses can be runned ethically to serve consumers, and not to make profit at the expense of consumers.

1 comment:

  1. I second that.
    As a consumer, I detest this opt-out scheme and also telemarketers who somehow have your mobile number making sales pitch at you.

    Hmm.. Mr Tan, maybe you should consider running for President of CASE. I think you are quite suitable for that position. :) Or maybe CASE should start a blog to communicate with their intended audience, the consumers, on decisions that affect their everyday life.

    This is my 1st post here but I must say I have enjoyed reading your posts.

    On an unrelated topic, it goes to show that Passion wins over $$. You are not paid to blog but you blog because you want to share your passion of insurance and finance.
    Hmmm..Wait.. I think you can even run for President next time round. ;) Jazz up our Presidential election a little.

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