Can you sue a bank for withdrawing an advertised offer early?

A bank advertises home loans at low interest rates for 3 months but toward the end of the second month the bank withdraws the offer. If you opened an account for the offer, but it was withdrawn before your application was processed, can you sue? What are the legal rules that apply?

Asked on March 22, 2011 under General Practice, Oklahoma


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You can probably complain to the bank's regulator and see if you can get the bank to honor that offer. If you opened an account relying on the offer and you were approved for the loan but didn't close, then you may have a claim. If you opened the bank account relying on the offer, but did not have your application processed for approval yet, you may not have a direct claim yet. Meaning you don't know yet if you obtained that low offer or a higher amount because the bank withdrew the offer. Banks have to meet truth in advertising like other businesses, but more so because their FDIC insurance and charter are also dependant on not conducting unfair and deceptive trade practices. Talk to your state's department of financial institutions and file a complaint. See where that complaint takes you but make sure to update that agency if you obtain new information from the bank regarding your loan application.

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