Creditors are frequently asked to provide credit references. Doing so correctly protects customer as well as the creditor. The following are some do’s and don’ts guidelines for the exchange of credit information:
- Don’t share anything except factual information [data you can prove is correct]
- Never ever discuss your future intentions, and don’t ask about the future intentions of anyone else
- Don’t ask for advice about how to deal with a customer
- Never offer advice of another creditor
- Don’t discuss your terms of sale, or ask other creditors to discuss their terms of sale
- Never reveal the source of credit information
These guidelines are for the protection of all creditors and should be adhered to at all times. Are you compliant with these rules? I welcome your comments.
Michael C. Dennis is the author of the Encyclopedia of Credit, a free, fast, internet resource for credit and collection professionals. He is a frequent instructor at CMA-sponsored educational events. His most recent book, “Happy Customers, Faster Cash,” is available at amazon.com. He can be contacted at 408-204-0129.