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Obligation to Respond to Requests for Credit References
Creditors are not under any obligation to respond to requests for credit references unless you belong to an industry credit group's bylaws require a member to rate to other members. Creditors have no duty to provide credit references. Many creditors recognize that an open exchange of credit information benefits creditors and participate on this basis.
Generally, a creditor's only legal obligation is not to misrepresent its credit experience with a debtor company. If you choose to provide references, I recommend you ask callers to FAX their requests and then respond at your convenience to them. I also recommend that any time you provide a credit reference that you request the same from the company that has contacted you.
One final comment: If you choose to respond to credit inquiries, do not respond under the heading of "Rating" or "Comments." Why? References are supposed to be factual. A rating is subjective, not factual and comments may or may not be factual.
© 2011. Michael C. Dennis. All Rights Reserved.