Get A Loan, Get a chance to Win

Answered by:

Question:

We are a financial institution that is planning to offer a promotion for home improvement loans. Along with the promotion we would like to have a drawing for some tools that will be displayed in our lobby. Customers who receive one of these loans will have their name in the drawing. Any laws or compliance issues that we should be concerned with?

Answer:

If you limit the drawing to only those who open a loan, you could be guilty of having a lottery....prize, chance, consideration. One possible way around this is to say anyone can enter, if they fill out the entry blank. If you are using the "give away" as an enticement to open a home loan, there are other, better ways to spend this money. Try www.bankmarketingpros.com

First published on BankersOnline.com 04/7/03