November 20, 2017

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Banking Law

Banking law covers a wide-range of legal issues including how money is loaned and exchanged, and the transactions reported. The areas of concern to most consumers include:

  • Check Clearing
  • Home Mortgage Foreclosures
  • Bank Failures
  • Fair Credit Reporting and Privacy
  • Equal Credit Lending
  • Truth in Lending and prohibiting Unfair Practices

Because of the complicated way banks operate, the guidance of a Banking Law Attorney may be invaluable. View qualified Banking Law Firms in your area to find International Banking Lawyers to get help with this process.

Check Clearing

Banks have between 1 and 11 days to deposit and authorize payment on a check. If your bank approves your checks faster than other banks approve the checks written on their accounts, you could have a shortfall. Be sure to discuss this matter with your bank in order to avoid overdrafts.

Mortgage Foreclosures

States vary in the way they manage foreclosures. Typically, you will be in default on your mortgage when you are more than 30 days late on a payment, although most lenders do not begin foreclosing for a few months after your first missed payment.

There two most common types of foreclosure are:

  1. Judicial Foreclosure – where a lawsuit is filed, and you must pay everything outstanding within 30 days in order to avoid foreclosure (curing the default). If the default is not cured, the sheriff or court will sell the property at auction.
  2. Non-Judicial Foreclosure or Power of Sale allows a lender to foreclose on property without the inconvenience of a lawsuit. Notice is sent to the borrower, but once the waiting period is passed without curing the default, the lender takes possession of the property and may sell it.

Bank Failures

The Federal Deposit Insurance Corporation (FDIC) provides insurance covering many of your deposit accounts against loss. These include savings, checking, money market, NOW and certificate of deposit (CD) accounts in any insured bank, up to $250,000 per depositor per bank. Not all banks are FDIC insured and it is your responsibility to determine if accounts and your bank are protected by FDIC insurance.

Fair Credit Reporting and Privacy Protection

You are entitled to have your credit information reported fairly. You are also entitled access to copies of your credit reports from credit bureaus and the right to dispute any negative or false information contained within the credit report. Banks and other organizations are supposed to notify you when they add negative information or take adverse action because of a credit report.

Your bank and other creditors should not disclose your private data without first notifying you of their intention and providing you with an opportunity to “opt out” of that disclosure.

Equal Credit Lending

Banks cannot discriminate and should not consider your race, color, religion, national origin or sex when deciding whether or not to extend you credit. Generally, your age, marital status and whether or not you have received welfare should also not be considered.

Truth in Lending

Banks must clearly disclose all important terms of any loan made to you, including interest rates, late fees and penalties.

Related areas:

Collections Law, Consumer Credit Law, Bankruptcy, Debtor/Creditor Law, Civil Rights Law, Fraud