Pressure selling from financial firms on the rise as watchdog tries to clamp down

Jonathan Cary of law firm RCP said firms had to ensure they had strict rules in place to protect customers.

“Selling techniques which exploit consumers have been brought into sharp focus during the pandemic. The threat of a deep recession and finances being stretched further means some employees are resorting to these aggressive practices to hit crucial commission targets,” he said. 

In July the FCA warned that banks, insurers and equity release providers were not doing enough to curb rogue employees. It pointed to numerous instances of pressure selling and exploitation of vulnerable consumers.

It said the number of vulnerable customers had increased by 1.5 million since the start of the coronavirus pandemic.

Some 24 million people have at least one characteristic to be classed as vulnerable. These include physical and mental health issues, recent life events such as bereavement, financial knowledge and resilience.

The regulator is consulting on new guidance to ensure firms better protect customers from unfair sales practices and other financial harm. The consultation closes at the end of the month.

Consumers may be able to obtain a refund and compensation if they think they have been pressured into buying a financial service by complaining direct to the company.

If the dispute is not resolved within eight weeks they can take the dispute up with the Financial Ombudsman service, the official mediator. The charity network Citizens Advice said consumers could also complain to Trading Standards.