Clement applies for a home loan at Global Bank Inc. As part of the process, he provides his personal details to the banker who is responsible for sanctioning loans. The banker uses Clement’s personal information to sell him insurance policies. In this scenario, the banker’s action is considered _____.

The next time you apply for a mortgage or personal loan, you may be asked if you want to buy credit insurance, or it may already be included in your loan proposal. Credit insurance protects the loan in the event that you cannot make your payments. Credit insurance is generally optional, which means you don't have to buy it from the lender. In fact, the Federal Trade Commission (FTC), the nation's consumer protection agency, says it is against the law for a lender or lender to mislead credit insurance (or other optional products) on your loan without your knowledge or authorization, but only if it is misleading so that insurance can be legally applied which you can later withdraw, that is why it is said to be legal but not ethically correct.