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Referral Fees for New Deposit Accounts

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Question: 
Our marketing department wants to pay our customers (both consumer and business) a referral fee for every new deposit customer they refer to the bank. The referral must result in a new, funded deposit account.I am unaware of any restrictions on such a promotion. Am I missing anything?
Answer: 

In a nutshell, your new customer will have to waive a privacy right because you're telling someone else that these folks now bank with you. You also could have tax reporting when you pay $600, 1099-MISC.

First published on BankersOnline.com 12/13/10

First published on 12/13/2010

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