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The tying of bank cards with other services and products has additionally been a problem.


Reckless lending throughout the EU can also be connected with cross-selling. Within the context that is present cross-selling, also called item bundling, is the training of attempting to sell a credit item as well as another monetary item, such as for example insurance coverage. Cross-selling may take the form of a practice that is tying which means that another economic item is created mandatory to have that loan from the offered provider. Alternatively, such an item are agreed to customers as an optional additional (cf. Global Financial customer Protection organization (FinCoNet) 2017, p. 31). Cross-selling of financial loans can lead to a predicament where customers buy items that they cannot always desire or need and that involve additional charges and costs.

Cross-selling has been defined as a selling that is problematic in a large wide range of Member States (European Banking Authority 2017, p. 22). The for example the supply of that loan in conjunction with re re re payment security insurance coverage (PPI), motor insurance, or life insurance coverage, where customers failed to require the insurance coverage or had been unaware it out when concluding a credit agreement (European Banking Authority 2017, p. 22) that they were taking. As an example, when you look at the Czech Republic many consumers had been unwittingly granted credit cards at this time these people were buying other services and products (European Parliament 2014, p. 62). In this instance, the customers may be lured to utilize the charge card and, for that reason, may end in a problematic payment situation.

Cross-selling of PPI deserves special attention in this context. PPI is insurance coverage that allows customers to guarantee payment of loans in the event that debtor dies, becomes disabled or ill, or faces other circumstances preventing her or him from fulfilling the responsibilities cash net usa loans com login under a credit contract. More…