Covering Business Credit

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Is it unlawful to provide truthful but negative credit information about a customer in response to a credit inquiry?

Answer: No. It is not against the law to provide factual, historical information. Companies tend to get into trouble when they offer opinions, or when they comment on planned future actionsŠ Example - We plan to place this account for collection next week. Incidentally, offering an opinion could be as simple as responding to a request from a third party to "rate" an account. The question typically asks:

"Please rate this account: Excellent ___Good ____ Fair ____ Poor ____." Sections seeking subjective ratings should be left blank.

If the vendor contacts you asking that you "complete" the credit reference request, simply indicate that your company policy permits you to provide only factual, historical information. I usually add, editorially, that the only company I know that provides or offers ratings on customers is Dun and Bradstreet® .

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