Clearly looks like ties selling to me but INAL.Hammerer wrote:Does this apply to CUs? (And I guess the regs would vary province to province). I thought tied selling prohibitions was a federal bank act thing.BRIAN5000 wrote:This type of salesmanship is illegal it's called tied selling.Thegipper wrote:The CU contacted me and said they would give me a better rate is I transfer
Now only if the CRTC could apply the same philosophy for the same reasons.
I think it applies to CU's as well not sure, like a Credit Union is not allowed to advertise Insurance sales on its deposit site.
http://www.investopedia.com/terms/t/tiedselling.asp
BREAKING DOWN 'Tied Selling'
For example, your bank's mortgage specialist tells you that you qualify for a home mortgage. Then you're told that the bank will approve it only if you transfer your investments to the bank or its affiliates. You want the mortgage, but you don't want to move your investments.
The following example will help to explain the bundling of bank products and services.
You plan to open a deposit account that charges you for individual transactions. The financial institution representative offers you a package of services that includes a comparable deposit account, a credit card with no annual fee and a discount on purchasing travelers cheques. The total price for the package is less than if you purchased each part of the package separately.
Bundling products in this way is permitted because you have the choice of buying the items individually or in a package.