Your Thoughts on Bank References

Small bank vault or strongroom from 1901.
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CMA Member Poll: Thoughts on bank references when opening accounts. (376 responses) – Link to Poll
26% Bank references are good to have but not necessary
23% We request bank references
22% Bank references are essential
19% We do NOT request bank references
6% Other
4% Bank references are not necessary
Comments entered:
Jill Escoto
We request bank references, but the majority of the time; do not receive a response.
Susan La Morte
We only request a bank reference for customers needing a high credit limit.
Michelle Homan
the problem we run into w/ bank references is the response time if any at all takes 1-3 weeks. which at a tight quarter end close is unacceptable. then you have the institutes which most of them are turning to or starting now is to charge a fee $15-$25 to make 3 check marks and a signature and still take 1-3 weeks to respond. this is the least preferred method for us but we have to offer it as an option.
Christine McKenzie
We request a bank reference, but most banks are unwilling to share information.
Arlene Aquino
We request bank reference, but rarely gets a response.
Jane Smith
We always request a reference from the bank. However, we rarely receive sufficient information, if at all.
Rajesh Prasad, CBA
Bank References are important to see how long they have been in business as well as identifying essential data such as their revolving credit lines and if they have had any NSF. Banks will require valid signatures that match their files and they will provide the information you need. Once your customer authorizes the release of information, the banks will furnish what you requested. I always call the bank officer before requesting information. By doing so, they usually respond. Hope this helps. Raj
Dorella Beggs
Some banks give limited information, some don’t reply at all, and others want you to pay for the information.
The information is nice to have but not necessary, unless that’s the only reference provided.
F. Scott Wilson
Bank references are inconsistent. We can usually get this information in a credit report for most of our customers. As far as NSF’s and other derogatory data, banks don’t always release that to requestors, and at the same time don’t say whether they do or not. That means that significant derogatory information may not be revealed, or even acknowledged to exist, negating much of the reason for checking those references.
The biggest problem for me is I don’t *trust* bank ratings, at least not without additional independent information that improves my comfort level with the bank. We flat out don’t request them if there is any fee involved.
Natacha Navarro
We request refs too from the bank but majority of the time don’t receive them back. You would think in this time of unstable credit that the banking facilities would be more helpful/forthcoming with this information. We operate on a credit line ourselves that is tied to our A/R and the bank audits us once a year, this would help us make better decisions on new accts. It would especially be helpful if they shared derogatory info like NSF’s or if an existing credit line had been suspended.
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