Let’s assume you have received and reviewed and rejected a request for open account terms from an applicant company. What would you do if that applicant called and demanded to know the specific reason for your decision? Would you:
- Ignore the request, or
- Might you offer a response such as this: “Your company does not meet our credit granting criteria”, or
- Would you provide a more detailed explanation (and if so what information would you provide)
I think the answer is in part an internal policy issue, and in part a legal question based on relevant federal and state laws. I assume each of us has a process for handling this question from an angry applicant. I would be interested to know your process and your rationale for it.
This topic will be covered at the upcoming CreditScape Fall Summit, September 17-18 at the Tropicana in Las Vegas. For more information about the conference, visit www.creditscapeconference.com. I hope to see you there.
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.