Principles for the Exchange of Commercial Credit Information

Principles for the Exchange of Commercial Credit Information

RMA advocates using the highest ethical standards for the conduct of business, including the exchange of commercial credit information. This document is intended as a framework for the responsible exchange of credit information for commercial transactions. Banks may wish to tailor these Principles to their particular circumstances as well as to the laws and regulations to which they are subject. RMA recommends that banks consult their legal counsel for specific advice about the exchange of credit information.

While encouraging the exchange of credit information and ways to improve the exchange process, RMA does not monitor such exchanges, nor does it enforce these Principles in any way.

The Risk Management Association, 2000

Preamble

RMA has, since its inception, recognized the importance of a free and responsible exchange of information in credit-based economic systems. Practices for the Exchange of Commercial Credit Information facilitates such exchanges and promotes sound decision making while reducing the risk of loss due to fraud.

Commercial credit information is distinct from consumer credit information, whose exchange is expressly regulated. Both types of information exchange are subject to various laws that may differ by jurisdiction. RMA also advocates submission of information to credit-reporting agencies. (Specific guidelines for submitting that data are covered elsewhere.)

ARTICLES:

Art1. Two important elements in the exchange of credit information are confidentiality and accuracy of inquiries and replies. Confidential information includes the identity of inquirers and sources that cannot be disclosed without their permission.

Art2. Each inquiry should specifically indicate its purpose and the amount involved.

* A proper inquiry should contain the following:

* 1. SUBJECT: The subject of the inquiry should be identified as completely as possible; include full name, address,...