Employee Referral Program

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Question:

Is anyone aware of any compliance/regulation issues that would prevent our bank form instituting a customer referral program? Basically, we are thinking about paying customers $10 for every customer that they refer to us.

Answer:

As long it isn't for a real estate related loan or insurance or investment products, you should be OK. However, if you require the referred customer to open an account prior to paying the referring customer, you have to be aware of the privacy issues.

First published on BankersOnline.com 12/13/10