Skip to content

Customer Referral Rewards Program

Answered by: 

We would like to start a customer reward program where we pay existing customers $10 for every new customer they refer to us. Are there any regulatory or compliance isssues that this would raise?

A couple, which have been discussed over the years, can be found in the threads. Two key ones are the necessity to track the income in the event it becomes tax reportable under a 1099 MISC, and a biggie, the need for some special privacy waivers, because when the bank pays the referring person, they have divulged that that the other party has an account with them. Privacy doesn't allow such disclosures.

I assume you'd only pay for referrals that result in accounts. If you paid for loans, RESPA applicable loans would have to be excluded.

First published on 1/3/05

First published on 01/03/2005

Filed under: 
Filed under operations as: 

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