This afternoon right outside the front door of the Salvo’s store at Mitchell, a well-presented blonde woman representing Citibank was approaching customers entering and exiting the Salvo’s offering credit cards and debt consolidation together with the offer of a loan with 6.something% interest.
I realise I’m taking the moral high ground here, but honestly, how low can a bank or its representative stoop? I thought it was a disgusting tactic to stand out the front of an op-shop enticing people who are possibly financially challenged, to consider more credit cards or a loan. You could argue that it’s a free market, that the street is owned by nobody, or that she was actually promoting good financial management as a community service…
…but I’m far more cynical than that.
I just thought it was shameful.
/dobbing in a community disservice
That is, indeed, poor form.
There is no limit to how low banks will stoop.
Personally, I think the word ‘banker’ should be tattooed across the foreheads of anyone willing to work for one, and they should be permanently ostracised from polite society.
Is that even legal? And what was the stance of the people operating the store? Surely they must have had some objections.
considering that several of the people entering the store would have been brought down by the banks at some stage of their lives, she was lucky that she wasn’t
a) being berated by several people
b) having nasty stuff thrown at her (monkeys fling similar)
c) getting beaten up
perhaps citibank thought she was doing the right thing in canvassing mitchell, but there are better places to try and drum up business. Poor form by her, and by her sales manager if they had an inkling of what she was doing.
reminds me of an insurance company who has roving sales people that target specific demographics and sell based on the FUD (Fear, Uncertainty and Doubt) factor. Targeting people who are down and out, and sell the “life” insurance by telling the punter that they would leave their wife and kids with nothing if they didn’t sign up right away…
Banks will do anything to meet their sales targets.
jakez said :
One can argue the first two points without believing that the bank is doing the right thing.
Debt consolidation loans aside, it seems in very poor taste and will be something I consider if I am ever looking to switch banks.
It is a sad reflection on the industry that this doesn’t surprise me. My two year old nephew received a letter from a particular financial institution informing him that he had been pre-approved for a credit card with a $5000 limit based on a very small bank account his parents opened for him.
Stay classy, Citibank!
colourful sydney racing identity said :
Helllooo Thomas the Tank Engine train set (complete with all trains)!
I wonder how much commission this person was on? I wonder how they deal with the moral dimension of their actions?
“reminds me of an insurance company who has roving sales people that target specific demographics and sell based on the FUD (Fear, Uncertainty and Doubt) factor. Targeting people who are down and out, and sell the “life” insurance by telling the punter that they would leave their wife and kids with nothing if they didn’t sign up right away…”
Reminds me of a group of insurance/funeral plan companies who advertise mainly during Dr Phil and Oprah using ’scaremongering’ tactics to convince people to buy their rip off plans.
jakez said :
We have aspects of a “free market” for finance shysters.
But the street is owned by us, not nobody.
The bank is morally wrong, and so we should act against it – by using our individual market power, force of public debate, and as a last resort our collective force through government action. Throwing things at the individual is probably about as useful and ethical as swearing at Indian call centre operatives.
“Its a free market” is never a good argument for inaction. You have to look at the results the market is producing, and decide whether you want to influence it.
At the moment, if this story is accurate, then this bank is bad; so no custom from me and mine.
aren’t citibank in strife now in the downturn? I wouldn’t be trying to turn away clientele when times are so bad.
GB I agree with you (except for your last resort). Boycotts and consumers using their market power are all part of the free market as well. The free market is merely the sum of unimpeded voluntary agreements and interactions.
I believe Citibank are in the rather unique position of being both profitable AND insolvent.
Being “right outside the front door of the Salvo’s store” wouldn’t the Salvos be able to move her on? provided she was on their property and not wandering the street.
It is not really any different to Hardly Normal or Ptomaine offering intertest free terms to folks who could never afford to make the payments anyway and then enjopying the 26+% interest when they fail to pay their purchase off in the time allocated.
When the government and media is blaming predatory marketing and lending practices by banks as a cause of our current woes, one would think that a bank would think twice about approaching the potentially impoversihed and offering them credit.
In a previous life I had some dealings with Citifinancial – an arm of Citibank that targeted low socio economic households with poor credit ratings for very high interest loans.
I don’t believe it is illegal, but totally unethical.
I think Citibank were also offering a gift voucher if you spend with their credit cards. If you spend $10000 in two months they give you a $25 gift voucher, I cant really understand how they can afford to be so generous.
This is interseting given the current talk of toxic debt etc.
We took advantage of Gerry’s interest free period (actually ptovided by GE finance) with no problem at xmas. The staff did however confirm that about 30% of applications were being knocked back. And some when they could see no reason not to have the credit approved.
If I was a Citi shareholder and knew this is where they were shopping for clients – I’d be very annoyed….
It’s not new, they have been doing it for at least 5 years to my knowlege. They used to employ people to stand around at footy games in Western Sydney to hand out forms for high interest loans. As they were providing credit to consumers that were such a high risk I am not surprised they are in trouble now.
Someone once told me that the interest rate could be as high as 40% though that is totally unverified.
LaLa said :
Tell that to the US congress.
PBO said :
No it is not – unless of course the Minister is now issuing exemptions for the banks to undertake such activity.
Part 2 “Hawking in Public Places”, 14. Restriction on hawking near commercial premises, of the Hackers Act 2003 states:
14 Restriction on hawking near commercial premises
(1) A person commits an offence if—
(a) the person carries on business as a hawker at a location in a
public place within 180m of commercial premises; and
(b) the person is not an exempt person for the premises.
Maximum penalty: 10 penalty units.
Note An exempt person may carry on business as a hawker within 180m of
the commercial premises to which the exemption applies (see s 14 and
s 28).
(2) This section does not apply to a person who carries on business as a
hawker for an exempt person in accordance with the exemption.
(3) An offence against this section is a strict liability offence.
http://www.legislation.act.gov.au/a/2003-10/default.asp
colourful sydney racing identity said :
I got a similar offer the other day, I think it was from Citibank as well. I thought this type of thing (pre-approved unsolicited credit card offers) were now illegal?
As neanderthalsis said, trying to sign up Vinnies customers isn’t that different to Harvey Norman and the like offering interest free loans to customers. Just because someone shops at Vinnies doesn’t mean they are down and out or on welfare, plenty of well heeled people shop there just because they are tight arses and like saving a buck. Go for a drive past one day (Saturday morning is usually the busiest time) and check out all the cars parked out the front. You won’t see many clunkers there, plenty of late model cars including the obligatory “soccer mom mobiles”.
People who are desperate do desperate things, I only hope they didn’t fall into that trap