Credit Bureaus & Secondary Cardholder Verification

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Question:

When opening credit cards for joint cardholders, the primary account holder's credit bureau is pulled for underwriting purposes as well as to verify the identifying information. Identifying information is obtained from the secondary, but no credit bureau is pulled unless it is needed for underwriting purposes. What are the verification requirements on the secondary cardholder? Does the bureau need to be pulled? Can another source of public information be used? Is it even necessary to verify the second cardholder's identifying information?

Answer:

Each financial institution must have its own CIP approved by its board of directors. That document should direct you on how to verify the identity of joint cardholders.

The CIP regulation requires that you verify identification for each joint cardholder, but does not set up the process by which you do so. Your institution's CIP may provide for non-documentary means for verification, and those means can differ from the methods you use for the primary account holder (presumably the first signer on the application). But you must verify the second cardholder's identity in some way.

First published on BankersOnline.com 07/04/05