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INDIVIDUAL ASSIGNMENT
Submitted By
Sahil Sharma(A049)
This is one of the mostly adopted unfair practices by the firms. This is
generally
done
through
misleading
advertisements,
misleading
further campaigns for the product made clear that the "up to 60%"
claim referred only to the appearance of lashes
Financial Institutions
1) Lloyds Banking group: Towards the end of 2013 Lloyds Banking Group
were fined 28 million by the Financial Conduct Authority (FCA) for a
'sell or be demoted' incentive plan which, according to the FCA,
created a "culture of misselling". Under this scheme sales staff across
Lloyds, Bank of Scotland and Halifax were put under pressure to hit
targets in order to avoid being demoted, rather than focus on what
consumers needed. This abuse of the relationship between the
company and the customer is especially poignant when selling to
vulnerable customers, such as the elderly, the young or those unable
to make their own informed decisions
2) Homeserve: In February 2014 the FCA fined Homeserve which insures
more than 2 million people in Britain 30.6m for poor complaints
handling and mis-selling. The FCA said the firm had focused on the
"quantity not quality" of sales to the detriment of customers.
3) Fintech firm LendUp: LendUp has agreed to pay $3.63 million to
settle allegations by a
federal
regulator
that
the
online
lending
company didnt help customers get cheaper loans and build credit as
promised. The lender, affiliated with San Francisco-based Flurish Inc.,
didnt have lower priced loans available to consumers which they
advertised, misled customers about the true cost of the loans offered
and at times didnt provide borrowers information to credit reporting
companies.
Good practices
While there were various firms that engaged in bad practices, there were
also several firms which identified the bad practices going on in their
organizations and straight away took actions against them. Some of the
examples are:
the
implications
of
giving
misleading
information
to
its