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American Express Foreign Exchange Practices to draw the bait-and-switch exam



American Express said it is conducting a review with an outside party for a report on sales tactics in its foreign exchange deal.

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Banks have long used introductory offers to attract new customers just to raise prices or otherwise make products more expensive. And a recent survey shows that despite the sales scandal at Wells Fargo & Co., bank employees are still under pressure to meet their sales goals.

Linking sales with premiums or other incentive awards has long been common in banking. where many employees are paid by the hour. Abuses such as the two years ago in Wells Fargo disclosed practices in which employees opened fake accounts for customer names to master aggressive sales hurdles, have put a new focus on how banks reward employees for the sale of products.

The failure of sales quotas can still lead to bullying, retaliation or potential dismissal, according to a recent poll by 400 employees of some of the country's largest banks by the National Employment Law Project and consumer groups forming the Better Banks Committee. 19659003] More than half of respondents said hourly pay was supplemented by bonuses or other bonuses, and 56 percent of goals were based on revenue, not on customer satisfaction (this category received only 14 percent). The survey included employees at major banks such as JP Morgan Chase, Bank of America and Citi, but not American Express.

Nearly half of respondents said they had not achieved their goals This led to a personal interview with a supervisor, while a quarter led to disciplinary action and a little more to a layoff. Only 10 percent said there were no consequences.

Amex spokeswoman told CNBC in an e-mail that the company's offered exchange rates are competing with the current market and that rates, with the exception of a few larger ones, are not high. t on the basis of a pre-agreed contractual price obligation or spread.

"The system is designed to allow customers to compare our prices offered for their transactions with the prices offered by our competitors," said the spokeswoman. "We have training, control and compliance oversight and believe that our transactions are completed and reported in a fair and transparent manner at customer-approved rates."

The WSJ report said Amex & # 39; sellers achieving their goals received a commission of 15 percent of the monthly revenue generated by new customers, and the commission rate rose to 25 percent once an annual sales target was exceeded ,

Read the full WSJ report here.


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