Banks seem to be the same everywhere – trying to get every dime possible out of their customers. A Swedish bank SEB advised an 87-year woman form Stockholm (Sweden) to invest her savings, $80000 (500,000 kronor) that she inherited, long term in a endowment insurance scheme that won’t offer any repayment on the investment until 2012, when she turns 95. Furthermore she would then only receive a maximum 8,000 kronor per month over five years.
As expected the woman reported the bank to the Swedish National Board for Consumer Complaints who found the bank at fault.
According to documentation witnessed by the ombudsman, the then 87-year-old had expressly told the bank’s investment advisor that she wanted her money to remain available in case of illness.
The ombudsman argued that the woman should have been advised to pay off 500,000 kronor of her mortgage, although her request for repayment of mortgage interest for the interim period was rejected. Source: www.thelocal.se
The advisor from the bank should have realized that she might need the money sooner for illness. He probably went for the long term investment for his own incentive while disregarding the more practical choices.