Skip to content

Adverse Credit Reports on Authorized Signers

Answered by: 

When we have an existing client that is adding a power of attorney or trustee to an account, we pull a credit report on the individual. Our accounts have checkwriting, Visa card and margin loan access. If the individual does not meet the credit standards, can we tell the client this individual is being denied account access due to credit, or would this be disclosing information to a third party? The other problem is telling a client that the person they selected for trustee or POA cannot hold this position on their account. Many times this is a spouse or family member. How can we handle this situation?

I advise talking to your attorney. Where is your authority to deny who the person chooses as a POA or an authorized signer on the account? They are the account owner and the liable party. Where's your legitimate business reason to pull a credit report on the potential POA or authorized signer?

First published on 7/18/05

First published on 07/18/2005

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics