TD bank employees admit to breaking the law for fear of being fired

[LickingGravity]

I have been a client of TD, TD Wealth and the Royal Bank for decades and never have been upsold, with or without my knowledge.

In the interest of full disclosure I own a lot both stocks - Royal has gone from $73 to $97.66 in the last 52 weeks (33% return). The TD has gone from $54 to $66.00 after that story yesterday- still, a 24% return.

Increasing a person credit limit by $2,000 does sound like a hanging offense to me. Do people not read their monthly statements anymore?

 

[dirkd101]

I believe there's truth in this article, just from my own experience with my bank, which is not TD. I've noticed that anytime I make contact with them there is some sort of sales pitch coming from them, usually unrelated to what I am currently contacting them about. I deal directly with the manager as well and she has drank the banks Kool-aid, but after she gives the party line, knowing me, she says "and you don't need this." The culture is there, the pressure must be constant for all, as the trickle down effect would be in top gear.

While our banks weathered the financial fall out storm, I'm certain that the banks had to find new ways to squeeze more out of their customers in order to increase profits.

 

[Mintoronto]

Anyone hazard a guess on how to buy in to this? Down about $4. Do you wait a couple of days, weeks, month or buy know? Just asking for opinions.

 

[LickingGravity]

While our banks weathered the financial fall out storm, I'm certain that the banks had to find new ways to squeeze more out of their customers in order to increase profits.

Selling is much different than "squeezing". If people can't say no to a mild sales pitch they almost shouldn't sole control over their own money. Everybody tries to sell these it seems. I admit it can be tiresome.

 

[Chloë.]

Price Waterhouse the accounting firm is not owned by TD whatsoever. At one point, TD's brokerage was called TD Waterhouse (unrelated) and has recently been renamed TD Wealth in Canada, and TD Ameritrade in the US.

+1. PwC and Td's brokerage are two different entities.

 

[Chloë.]

I have been a client of TD, TD Wealth and the Royal Bank for decades and never have been upsold, with or without my knowledge.

In the interest of full disclosure I own a lot both stocks - Royal has gone from $73 to $97.66 in the last 52 weeks (33% return). The TD has gone from $54 to $66.00 after that story yesterday- still, a 24% return.

Increasing a person credit limit by $2,000 does sound like a hanging offense to me. Do people not read their monthly statements anymore?

It's the fees associated with these actions. You may not be in a position to have to consider ramifications of a mere $2000, but many low to mid level income families are. Try to be objective here versus disclosing successful portfolio returns. That sadly isn't the crux of the matter and if I remember correctly Wells Fargo was still exhibiting positive returns very briefly after that scandal too. But look at what's happening to them. TD has only had 48 hours.

If a teller increases your line of credit or opens an account unbeknownst to you for a few months, you'd be pretty peeved too. Even just for one month before your statement processes. Multiply that by hundreds of thousands of people in different socio-economic statuses and you have a situation. This isn't complete negligence on the consumer front.

Just because you haven't been upsold to your knowledge, does not mean it didn't happen without either. It's just simply not to your knowledge unfortunately.

 

[Insidious Von]

Price Waterhouse the accounting firm is not owned by TD whatsoever. At one point, TD's brokerage was called TD Waterhouse (unrelated) and has recently been renamed TD Wealth in Canada, and TD Ameritrade in the US.

You're right they are not affiliated.

I got refereed to Price Waterhouse From TD on two occasions, I assumed they were connected. The American brokerage arm is in fact called TD Ameritrade. Thanks for clearing things up, now I must ask TD customer service why it was so important to them to sell me Price Waterhouse?

 

[rookieboy]

I understand that it's a management method but I'm pretty sure all the banks probably does this. If your advisor doesn't "pitch" you anything then how would you know that a product exists?

If all you're doing is going into a retail bank branch and tell them exactly what you want to do after researching it yourself then you might as well go with a self-managed accounts like Tangerine or discount brokers like Questrade to save money on the associated fees.

 

[SkyRider]

Last October when I was in Vegas I was speaking to a couple who had had 7 extra accounts openned in their name.

I doubt this could happen in Canada. I recently opened an account with an independent broker.

1) I had to show them my passport and S.I.N. card.
2) They called the credit bureau and asked why there is an "alert" in my file.
3) They asked me the source of my income (sports betting).
4) They asked the source of my capital (inheritance and lottery winnings).

They said they had to do all this due diligence because IIROC.

BTW: Having an "alert" in your credit bureau file makes it virtually impossible to obtain a credit card online.

 

[The "Bone" Ranger]

they open additional accounts for an existing customer, so yes, it can happen in Canada my friend

I doubt this could happen in Canada. I recently opened an account with an independent broker.

1) I had to show them my passport and S.I.N. card.
2) They called the credit bureau and asked why there is an "alert" in my file.
3) They asked me the source of my income (sports betting).
4) They asked the source of my capital (inheritance and lottery winnings).

They said they had to do all this due diligence because IIROC.

BTW: Having an "alert" in your credit bureau file makes it virtually impossible to obtain a credit card online.

 

[oakvilleguy]

Anyone hazard a guess on how to buy in to this? Down about $4. Do you wait a couple of days, weeks, month or buy know? Just asking for opinions.

I'm thinking of shorting the other banks. It is a very competitive landscape in retail banking and if there's smoke, there's fire at all of them.

 

[SkyRider]

they open additional accounts for an existing customer, so yes, it can happen in Canada my friend

Never happened to me. I opened a second account with my broker and had to undergo the same due diligence routine.

BTW: In light of ID theft and the ease of obtaining credit cards online, might want to consider placing an "alert" in your credit bureau file. Alternatively, pay a fee to these ID protection and monitoring companies.

 

[SkyRider]

I'm thinking of shorting the other banks. It is a very competitive landscape in retail banking and if there's smoke, there's fire at all of them.

Not a good idea to bet against the Canadian banks. If they do drop, especially after the the recent runup, buy more shares. Your heirs will thank you. An old geezer at my broker said his original cost of RBC shares is $5 and his current annual dividend on these same shares is $5.

 

[thadude]

This is Smoke and Mirrors. As pressures rise in the political landscape to Crack down on mortgage lending practices by the big banks, more and more reckless behavior will become exposed. This is a way to blame an "innocent" demographic for the greed and financial orgies taking place in our credit bubble, all backed by the Canadian Tax payer

 

[thadude]

Our banks did not ask for a penny of government aid.

They may not have asked but I'm sure they were backed by the government and who's to say they were never given any?

 

[thadude]

This is Smoke and Mirrors. As pressures rise in the political landscape to Crack down on mortgage lending practices by the big banks, more and more reckless behavior will become exposed. This is a way to blame an "innocent" demographic for the greed and financial orgies taking place in our credit bubble, all backed by the Canadian Tax payer

http://projects.thestar.com/panama-papers/lessons-for-canada/

 

[onceaday]

TD - Take a 25% position first thing Monday and hope it goes even lower, then add another 25%. Be your own judge as to filling the 50% balance. If RBC or BNS take a similar dip (I doubt) choose one and start/add to a position there. IMO this illustrates how "on edge" investors are such that even the slightest negativity/bad PR has many running for the hills and selling on short term fear. It's a great buying opportunity for TD albeit I am not in love with the DIV. G/L

Anyone hazard a guess on how to buy in to this? Down about $4. Do you wait a couple of days, weeks, month or buy know? Just asking for opinions.

 

[curr3n_c1000]

I worked at TD when I was in University. They definitely have an upsell culture under the guise of Customer Service.

It's not a cut-throat culture, but there is hard pressure to sell and create leads. It gets to you when you notice 98% of the people are just average joes trying to make ends meet.

 

[The "Bone" Ranger]

Never happened to me. I opened a second account with my broker and had to undergo the same due diligence routine.

BTW: In light of ID theft and the ease of obtaining credit cards online, might want to consider placing an "alert" in your credit bureau file. Alternatively, pay a fee to these ID protection and monitoring companies.

we're not talking securities accounts here, we are talking bank accounts, you are comparing an apple to an orange, there is no credit bureau pulled to open additional bank accounts

 

[explorerzip]

Technically speaking, we're all being up-sold at all times. Nobody "needs" the latest and greatest gadget, car, home, vacation, etc. Like any business, the banks have to sell to maintain it's product offerings (no fee cards, extended banking hours, ABM's, etc) and their dividends too. There's nothing morally or legally wrong to up-selling IMO as long as you don't stray into fraud.

It is sad that we spend so little time teaching kids (and it needs to start there) about how to manage, control or just pay attention to the money coming in and out and to the people that try to take it i.e. sales people.