Underhand behaviour by Spanish banks

published by Jeremy:

It appears that Spanish banks will stoop as low as they have to in order to get customers to invest in one of their ‘products’. Here is a disturbing report of a bank selling a complicated product to an elderly woman who, as seen by the thumbprint where the signature should be, is illiterate. The bank sold her something apparently very simple – invest €6000 in this savings account, and you get good and fixed interest from it. You can withdraw your capital at any time. This is in fact a blatant lie. The ‘product’ is what is known as participaciones preferentes. It is in fact an annuity, where you have no access to your capital. The ‘product’ can be sold on and in theory you could get its value back. In practice, there might not be a buyer and the market price could be well under the investment you made. Not only that, the ‘product’ is not secured, so that if the bank goes bust, you lose the lot.

I mention this here, because without naming names I know of banks in Tenerife who are targeting English-speaking clients with this kind of thing, and are not being honest about the conditions attached. They in fact employ English staff as foreign customer liaison, a large part of whose job involves phoning up customers with what appears to be advice and recommendation, but is in fact a sales pitch for ‘products’, relying on the trust they have built up in order to do just this.

(p.s. I have given my husband, Jeremy, author rights on my blog because he often finds items of interest in the news that don’t jump out at me but which I think are valuable for this site. This is his first post, and I hope everyone will feel free to discuss and comment on his posts as much as on my own.)

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