The Probert Encyclopaedia of Money

CHURNING

Churning is the practice by a broker of encouraging an investor to change his investments frequently in order to make him pay excessive commissions. Also the practice by a bank, building society, insurance broker, etc., of encouraging a householder with an endowment mortgage to surrender the policy and to take out a new one when seeking to increase a mortgage or to raise extra funds, instead of topping up the existing mortgage. The purpose is to increase charges and commissions at the expense of the policyholder.
Research Churning