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 If you opened an account for the offer, but it was withdrawn before your application was processed, can you sue?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

Answers:

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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.