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How TCF Protects Your Consumer Rights
How TCF Protects Your Consumer Rights
31 Jul 2019

With an increase in people interested in products and services that protect their financial service, many people are vulnerable. However, knowing your rights can prevent you from being taken advantage of.

In the last 20 years, there has been an increase in people who are interested in purchasing or investing in products that can protect their financial future. However, with so many options available it can get tricky for First times entering the market. It can also leave many people vulnerable by being manipulated into a purchasing something that will not be beneficial for them in the long run. Regulatory bodies such as the Financial Service Board (FSB) exist to ensure that this does not happen, by monitoring the financial industry through the Treating Customer Fairly (TCF) act. This is what you need to know when it comes to TCF protecting your rights.

What treating customers fairly is about?

As a customer, you have rights. The goal of TCF is to make sure that your rights are protected and that you walk away with a fair deal. It was implemented in January 2014 due to the high number of people that were entering the market for the first time who had little to no understanding of the financial market. TCF holds financial service providers accountable by ensuring that they sell you a product that is suitable for your financial circumstance and will benefit you.  It also prevents unfair treatment from a financial provider where you could be manipulated into a product or service by a financial provider who is more knowledgeable about the product.

What does TCF offer?

TCF provides a safety net for customers by ensuring that financial providers follow six outcomes. By failing to follow these outcomes the Financial Service Provider (FSP) you are dealing with will be infringing on the TCF act which could result in a penalty. FSP’s should:

  • Treat the customer fairly and not discriminate against.
  • It should be a product or service that is appropriate for your needs and matches your financial circumstances.
  • There is a clear explanation of what you are buying as a customer before, during, and after purchase.
  • The advice you are given is correct and considers your circumstances.
  • The product or service should perform as promised and should not be misleading in any way.
  • There shouldn’t be unreasonable post-sale barriers when wanting to change the product, submit a claim, lay a complaint, amend policies or, cancel cover.

Making an investment such as taking out a life insurance policy to protect your loved one’s financial future is important. Remember where there is smoke there is fire. If there is something that does not add up about the Financial Services Provider (FSP) you are dealing with, then you could be scammed. Therefore, it is vital to check that the FSP you are planning on taking out a policy with is registered. Find out the 4 warning signs if you are being scammed into a life insurance policy.

Need more information on MiWayLife? Read about our life insurance product, or get a life insurance quote in 30 seconds. Alternatively, call us on 0860 64 54 33 .
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Terms and conditions apply. Eligibility, cover and benefits are determined on individual risk profile. MiWayLife is an authorised FSP (No. 45741) and its product offering is underwritten by Sanlam Life Insurance Limited, a registered long-term insurer. MiWayLife is a division of Sanlam Life Insurance Limited - Reg No. 1998/021121/06