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Industry Credit Group Rules of Conduct

The rules governing the conduct of credit groups typically include all of the following:

  1. Experience reported must be historical, related to past activity. Attendees cannot indicate future plans or intentions.
  2. Information must be factual and objective.  Subjective comments and opinions are never acceptable.
  3. Decisions as to the activity of any creditor must be made on an individual basis. No group action or plan may be suggested, discussed or agreed upon by members.
  4. Information developed through the interchange of credit information must be kept confidential. It must be used by credit personnel only and must not be shared with sales and marketing people.
  5. Sources of credit information may not be revealed to customers
  6. The rules governing conduct and in particular rules preventing collusion apply to attendees both in and out of the actual industry credir group meeting. In this scenario, collusion refers to secret cooperation between the representatives of two or more companies to defraud or to gain an unfair competitive advantage.

Submitted by Michael C. Dennis

 SuS

Submitted by Michael C. Dennis