Building strong client relationships is generally high on the list of priorities for financial lenders. A close relationship leads to better customer service and further increases the potential for repeat business. That said, a longstanding banking relationship provides the opportunity for misunderstandings caused by informal conversations—especially when one party believes an assurance or promise has been provided either orally or in writing. Unfortunately, such misunderstandings can lead to disputes and, ultimately, litigation. This article provides a summary of a recent Nebraska Supreme Court case and discusses a few things to keep in mind when communicating with all customers—particularly those with whom you have a strong informal relationship.
By Andrew B. Koszewski and James Kritenbrink, Woods Aitken