1. Status enquiries/ opinion
It is considered as part of the banker’s duty to the customer where the banker responds to enquiries usually but not always from another bank asking of the customer’s, standing or credit worthiness.
Status opinion is requested because it is considered to be a reliable guide to the enquirer.
Sources of status enquiry:
A shop or finance company wishing to supply goods on hire purchase or on other deferred payment.
Landlords/ ladies
Trade protection society seeking information for use by it’s members.

2. Procedures involved:
Bank to bank- routed through the enquirer’s bank to the bank of the customer the enquiry is about.
However if it is coming from a well –known trade protection society, the bank replies direct to the enquirer just as it will deal with another bank.
Dealing with enquiry by telephone: It should be handled with caution or if possible completely avoided
Approach to it: take the enquirer’s tel. number and promise to get back to him.
Check the said number in the telephone directory or exchange.

3. Usual matters which the opinion required are:
- Financial Standing of the customer
- The credit worthiness of the customer
- Bank’s reply should be based on the existing knowledge
- The information given is formal and stereotyped and can only be understood by the banks. For example:
- “Responsible and considered good for your figures” (indicating favourable response)
- “We cannot speak for the figures” or Has only recently opened an account with us” (indicating adverse or negative response)

4. The reply to the enquiry is usually headed “ Confidential for your own private use only and without the responsibility on the part of the bank or its officials” – Disclaimer
The opinion should not be signed
BANKERS DUTY OF CARE TO ITS CUSTOMER IN GIVING A STATUS OPINION:
A banker must not give adverse opinion about the customer without justification.
the banker stands to expose itself to breach of contract, negligence (duty of care) or even libel.

5. BANK’S DUTY OF CONFIDENTIALITY OVER STATUS OPINION
Banks owe a duty to their customers to keep in confidence what they know about their customers.
The exception to the rule is disclosure with the customer’s consent either express, implied.
Express consent:- customer gives his particulars to a third party for the purpose of enabling the later to enquiries
Or gives his bank direct instruction to reply when the enquiry is received.
Implied consent arises when the enquirer asked his own bank to required status opinion about the customer through the customer’s own bank.
Banks however has to carry out this with due diligence especially when given an adverse opinion (when it has to be given) in order not to breach contract or be sued for libel.

6. Liability to the customer:
1.Breach of secrecy
2. Libel