When a bank gives financial services to an individual, as opposed to a bank, it is called consumer banking. The services that banks provide for consumer banking can include credit card services, personal loans, and checking and savings accounts.
A consumer bank can also provide people with certificates of deposit (CODs) and mortgage loans. To find out more information about consumer banking in the State of New York, it is important to have a legal consultation in New York.
The federal law, the Gramm-Leach-Bliley Act (GBLA), regulates how banks have to handle consumer information. Pursuant to the GBLA, a consumer banking customer has rights related to the privacy of their nonpublic personal information (NPI).
This means that, if a bank shares a customer’s NPI with another entity, the customer can submit a claim to the Federal Trade Commission (FTC). NPI includes information that the consumer gives to the bank when they are applying for a financial service or product, for example, a mortgage loan.
NPI may also include information that the bank obtains about the consumer during the financial transaction. NPI can include, but may not be limited to the customer’s income, monthly expenses, Social Security Number, and other information required to apply for a credit card, bank account, or other financial service.
In order for information to be considered NPI, it has to be something that is not publicly available. Examples of publicly available information include information that is in the public record, such as in land records, phone books, and driver’s license information that is available from a state motor vehicle department.
The GLBA requires that a bank inform customers about what types of information it collects. In addition, it requires the bank to share with a consumer the entities to which it may provide their information.
In situations when the bank may share the customer’s NPI with another entity, it has to provide the customer with the choice to opt-out. Opting out means that the customer has the right to refuse to share their NPI with any entity.
A bank is required by law to honor the customer’s opt-out request. A consumer, in general, can block a bank from sharing their NPI with outside entities.
As previously noted, if a bank provides a customer’s NPI to another entity intentionally or negligently, they can file a consumer complaint with the FTC. The FTC investigates these complaints that are filed by customers.
If the investigation of the FTC shows that the bank violated the GLBA, the FTC can impose penalties upon the bank and bank employees who were responsible for the violation. These penalties may include monetary fines or incarceration.
It is important to be aware that private claims are not authorized under the GLBA. This means that a consumer cannot file a private lawsuit against the bank for a GLBA violation.
New York lawyers can help consumers with any issues they have with their bank NPI, and GLBA violations.
In some situations, a customer may be able to sue a bank that refuses to give them a loan. This may be possible in cases of lender discrimination, where a bank denies the loan because of a discriminatory reason, such as based on a protected characteristic, for example, race, color, gender, and more.
In these situations, the customer would file their lawsuit in federal district court. To have a successful lawsuit, they would need to show that the bank intentionally discriminated against them on the basis of their membership in a protected class.
This type of case can be difficult to win. Because of this, it is important to have a financial lawyer who will be familiar with the proper evidence that will be needed and how to submit it to the court.
A customer can sue a bank in New York when there are specific laws that allow it. There are federal laws that provide guaranteed rights to consumers, including the Fair Credit Reporting Act (FCRA), the Truth in Lending Act (TILA), and the Fair Debt Collection Practices Act (FDCPA).
According to the FCRA, an individual can sue a bank if the bank will not remove inaccurate or false information that it placed on the individual’s credit report. The TILA requires banks to give customers accurate information about their transaction with the bank, such as the monthly payment, interest rate, and other relevant information about credit loans or mortgages that the customer may be seeking.
The FDCPA provides that a bank cannot harass an individual who owes them a debt or share information that is inaccurate to try and collect a debt.
Other than the specific situations discussed above, typically, a customer cannot sue a bank in civil court. In some situations, however, a customer may be able to sue the bank in small claims court.
A small claims court is a court that hears claims that involve relatively small amounts of money, $10,000 in New York. Each state has its own small claims court system that limits the amount of damages a plaintiff can receive as well as specific filing procedures.
In general, if a customer wants to file a claim in small claims court, they will have to file a complaint. The bank or a representative of the bank has to receive a copy of this document.
The bank then has an opportunity to file a response, called an answer. Once this is done, a trial date will be set. At this trial, both sides will have the opportunity to present arguments and evidence.
A customer can file a claim in small claims court if the bank owes them money but will not pay. This may happen if the bank charged a penalty for insufficient funds too many times, or otherwise improperly took their money.
If an individual thinks they do have a claim against their bank that may be above the limit for New York small claims court, it is important to consult with a New York lawyer to find out their options.
As discussed earlier, suing a bank is not an easy thing to do. If you think your New York bank has violated your rights, it is essential to consult with a New York financial lawyer.
Prior to contacting your lawyer, it is important to gather information about your issue with the bank. This can include documents related to your issue, such as statements from your bank. It may also be helpful to write a summary of events and dates related to your issue.
Your lawyer will be able to evaluate any potential claims you may have, as well as your legal options. You can use LegalMatch’s free lawyer matching services to find a New York financial attorney in your area who is ready to start helping you with your issue. It only takes about 15 minutes for you to submit your bank issue on the website and you will get responses from member lawyers who can help.
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