Monday, April 07, 2008

At the expense of customers

How can you identify a business that is being operated "at the expense of the customer"?

These businesses make big profits as follows:
* overcharge the customers
* mislead the customer into buying a bad product
* pays high commission to sales people to sell the products

The features of these products are:
* complicated
* lack of transparency
* speculative

Examples of these types of bad products are:
* time sharing
* land banking
* high cost insurance and structured products

These businesses are able to design products that are not suitable for customers, make them complicated, train marketeers to push the products and pocket big profits.

Lesson: Avoid these products that are developed to "rip off" the customers.


Anonymous said...

...and also structured deposit.

Anonymous said...

Revosave from ntuc meets them; it is complicated that a long and winding presentation maze is required to confuse and numb the customers.
No transparency, the customers have no idea of the return of the cashback and other options and never disclosed to customers.
Speculative, customers have no idea of the risks they are taking from cashbacks, leaving with the company or ILP investment.
Today the inflation is 6.5%. The cashbacks are condemned to loss of -5%.Are customers informed or warned of this. In the first place, it should be disclosed and even shouldn't be sold. The ignorance of customers is exploited.
Many of the so called salesmen and women you saw in Sunday Time got there by selling this rubbish products . Hope customers will realise that they have been taken a ride.

Anonymous said...

End-2007 and last few months, they are cheap cheap Thailand resort/condo on sales in Singapore.

Q. I have heard there are many different land titles in Thailand, which ones should i consider when looking to buy?.
John Howard answered: " The Chanote and the Nor Sor Sam Kor are the ONLY titles that a registered right of owenership or lease can exist and are the only ones that a prudent foreigner shoud consider." (Source: "Bluebook",

Likewise in PRC. Will you buy?

Anonymous said...

Why does such system exist in the first place? To con people money? Or to make insurance sales people richer?

Anonymous said...

Those who bought revosave , do you know that the total cashbacks after 20 years is about 1.8% return?
Do you know it is negative in real return? That is you have lost 2.2% if the inflation is 4%.
Do you know the current inflation is 6.5%?
If you knew, why did you buy revosave? Was it forced upon you? Did the agent miss represent? Did the agents conceal some facts. Were you told that the return would be 1.8% and that you would lose in real term? Were you confused by the presentation? Were you misled by the agent? Were you not told everything?
Consumers ,it is time that you ask these questions and check whether you have been mis-sold.

Anonymous said...

You only get 1.8% if you hold it to maturity because the end bonus makes all the difference. For some reason you have no stamina and you can only make it to second last payment, if this happens you don't get 1.8 but minus 1.8. This is the catch and you lose a lot.It is designed in a way to force you finish it.You are imprisoned for life. Live it up to the fullest.
Unlike products during
Mr. TanKL's time the breakeven point was shorter and if you could hold it for reasonable time you won't lose but not revosave.
People don't see it.The agents don't want you to see it.

Anonymous said...

Yes , revosave,s return is big loss.
Have you checked with expert about this so called retro product.It is retro save in fact becuase you will lose out to inflation every year on your cash back. It is negative return in real term. Ask your agents who sold to you to explain why it was not told to you.If he or she cannot explain, ask for refund of all premiums paid or lodge with CASE for misrepresentation and miss-selling.

Anonymous said...

Has your agent or in the benefit summary stated the risk of leaving your cashbacks with NTUC? Is the 3.5% gauranteed? If not, can it become ZERO? There is no table illustration of this investment. It is only WHAT IF it returns 3.5%.
You can see both the options are risky. The rate of return is only an assumption.
The streams of cashback are guaranteed provided you keep paying.The risk is you have to hold it to maturity. Complicated isn't it? Do customers know it?

Anonymous said...

Have your Revosave reviewed and understand what you have bought. Then quickly decide the painful but necessary cut loss action.

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