Is it legal to award a loan and then rescind it?

I recently applied for a personal loan from a company and I received an email stating I was approved and my funds would be deposited within 3 days. However, 30 minutes later I received an email stating my loan application was denied. I’ve called and they are just telling me my loan was denied and not giving me a reason. Based upon my approval email I have promised to pay a bill that I otherwise couldn’t pay without the loan.

Asked on October 8, 2014 under Business Law, Utah

Answers:

Anne Brady / Law Office of Anne Brady

Answered 6 years ago | Contributor

An email is not a binding contract.  It is a one-way communication.  So long as they did not sign any actual loan documents with you, they can change their minds about giving you the loan.  It happens with car dealers quite often. 


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.