The Tangerine Pledge to Our Clients
Tangerine will not pressure you on, or coerce you, to obtain a product or service from Tangerine and any of its subsidiaries and affiliates, as a condition for obtaining a loan or any other product from Tangerine.
What is Tied Selling?
Coercive Tied Selling is when a client wants one bank product and they are forced into buying additional banking products.
For example, Tied Selling could look like this:
In order to open a chequing account, you will need to set up a savings account first.
The Bank Act
Section 459.1 of the Bank Act prohibits banks from practicing coercive tied selling. More specifically, it is against the law for a bank to "impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the bank and any of its affiliates, as a condition for obtaining another product or service from the bank."
What is NOT Coercive Tied Selling?
Most businesses, including Tangerine look for ways to show their interest in your business and appreciation for your loyalty. Sales practices, such as bundling of products and services, offer new and existing customers better prices. This practice should not be confused with coercive tied selling, as defined by the Bank Act. This practice may be familiar to you in your dealings with other businesses.
What is Bundling of Products and Services?
Products or services are often combined to give consumers better prices, incentives or more favourable terms. By linking or bundling products or services, businesses are often able to offer them to you at a lower combined price than if you bought each product on its own. For example, a fast-food chain advertises a meal combination that includes a hamburger, fries and a drink. The overall price is lower than if you bought the three items separately. Similarly, banks may offer you bundled financial services or products so that you can take advantage of package prices that are less than the sum of the individual items. The following example will help to explain the bundling of bank products and services:
You plan to take out a loan. The bank offers a discounted interest rate for a loan that is bundled together with savings products offered by the bank and/or its affiliates. The total price for the package is less than if you obtained the loan separately from the bank’s (or bank affiliate’s) investment products. Alternatively, the bank offers other loan types at different rates. Bundling products in this way is permitted because you have the choice of buying the items individually or in a package.
Managing Credit Risk
Tangerine has an obligation to manage credit risk prudently; our customers benefit when we exercise this obligation faithfully. For the purpose of managing credit risk, Tangerine may place certain requirements on borrowers, as a condition of extending credit. For example, Tangerine may require a borrower to obtain a product or service, such as a transaction or operating account, or refrain from taking on additional debt, as a condition of granting a loan.
In addition, Tangerine may require security from the borrower for the loan and the security must meet Tangerine's approval.
Security taken by Tangerine against a loan is taken for the sole purpose of managing our risk and will be equal to the level of the risk undertaken by Tangerine. For example, the amount of the loan is secured by the equity in the home for the same amount (i.e. a $100,000 line of credit is secured against a $100,000 collateral mortgage).
Who to contact if you have any questions, complaints or concerns regarding Tangerine’s statement on Tied Selling.
Or if you prefer, write us at:
3389 Steeles Ave East
If your questions or complaints are not resolved to your satisfaction, please write to:
3389 Steeles Ave East
Tangerine is a trademark of The Bank of Nova Scotia, used under licence.