Coercive Tied Selling

  • Under section 459.1 of the Bank Act, banks are prohibited from practicing coercive tied selling. The Bank Act requires all banks to inform consumers in plain language, that coercive tied selling is an illegal practice.
  • A consumer cannot be put in a position of undue pressure to purchase a product or service in exchange for being granted approval for another product or service. An example is “your mortgage is approved subject to your RSP’s being transferred to our bank”.
  • Preferential pricing refers to the practice of offering customers a better rate on all or a portion of their dealings in appreciation for their ongoing business. A bank may offer a higher rate on investments or a lower rate on loans, in exchange for the customer using one or more of their products or services. This practice is acceptable. The mortgage is “not conditionally granted” given the transfer of investments to the bank.
  • CFF Bank will uphold this law by posting this statement for the customers and public to have available on our public website. All employees and consultants will be provided with this information to be included in their sales practices.
  • Customers having questions or concerns about their dealings at CFF Bank would contact the following: