Dirty Tricks in Financial World

Posted on December 20, 2015

When it comes to learning about financial aspects, we could remember specific details than others. There are rules that we need to follow, but we should know that some of them can be broken depending on the situations. As savvy consumers we should know when we should keep or break a rule. Consumers should benefit from learning about specific matters to allow them get a more profitable and enjoyable experience when handling financial matters. There are things about the financial world that we should know. As an example, banks are known for the ability to intimidate the clientele. This will allow them to maximize the profits. As an example, consumers could allow a CD to roll over automatically at a large bank. This means that consumers won’t bother to go to their banks to take care of the problem themselves.

This could happen if consumers mistakenly assume that the current interest rate will be identical to the expiring rate. Not many people bothered to look at their paperwork. Eventually, they can be surprised to see that the actual rate is actually half of what they have been earning. When consumers contact the customer service people, they will know that the interest rate will be reduced significantly. They were not told that the interest rate is only promotional. It is certainly something that we should understand about the actually trustworthiness of a bank. Another financial problem that we should consider is that we assume that insurance agents always know best. Insurance providers are actually imaginative makers of specific sets of rules.

These rules are designed to allow them make bigger commission and they can be made by the insurance company themselves. Unfortunately, there isn’t much additional information if we want to know more about our policy. In this case, we should inquire our agent about how they could arrive at specific replacement value. Unfortunately, we could get a disappointing answer that it is calculated automatically by the computers and the rules are working the same for everyone. It can be very disappointing to know that the replacement value that the insurance allocate can be higher than the actual market price of our house. It means that we will be asked to pay higher premiums. In this case, it is important for consumers to negotiate and bring proofs about the actual market price of the house.

Another dirty trick in the financial world is that warranty cards are mandatory. Manufacturers often want us to believe that warranty card is needed. They will ask us to fill a document and what they really do is to gather consumer data for their marketing campaign. Manufacturers will know about consumers’ income, age, where they buy the product and others. In this case, we should ask the seller to accept only our name, address, phone number and serial number of the product that we buy. According local laws, manufacturers have to provide warranty for their products.

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