Frequently Asked Banking Questions

How can I find out why my bank denied my loan application?

Within 30 days of receiving a completed application, your bank should notify you of its action - and the reasons for that action - on your application.  This is required by law under the Equal Credit Opportunity Act.

My loan was charged-off.  So why is the bank still requiring payment?

A national bank must charge-off any loan that has been delinquent for a period of time or deemed uncollectible.  This is simply an accounting procedure.  It does not affect your obligation to the bank.  Unless the bank forgave or cancelled the debt, you are still obligated to repay the loan.

You should refer to your Accout Agreement or contract.

Once a loan has been charged-off the bank may attempt to collect the debt itself, or it can sell the account to a collection agency.

The bank closed my checking account and did not notify me.  Is this legal?

Yes.  Generally, national banks may close deposit accounts for any reason (e.g., inactivity or low usage) and without notice.  Federal banking laws and regulations do not address the closing of deposit accounts.

This issue is governed by the Deposit Account Agreement you received when you opened your account.  Review that Agreement, and contact your bank directly for more information.

A local bank advertised a free checking account.  I signed up.  Now the bank is charging me for checks and for overdrafts.  Isn't this misleading?

Under banking laws and regulations, a national bank cannot advertise a free account if you could be charged a maintenance or activity fee.  But your bank can offer a free account and still charge for certain services such as check printing, ATM use, or overdrafts.

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