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#44457 - 11/20/02 06:56 PM Revoking a line of credit
Anonymous
Unregistered

Can/should a lender, without providing reason, revoke a performing unsecured line of credit? No change in financial status of the borrower, pmts are timely and no other loans are in default. The only adverse circumstance at this time is that after another loan was recently renewed and an expected principal reduction was not made prior to renewal, the customers unsecured debt exceeds bank policy. However, both the line of credit and other loan have been co-existent for quite some time and monthly repayment has been timely. I believe the loc contract does disclose the lenders ability to withdrawl the priviledge, but it has not been a general practice to do this. Opinions please...

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Lending Compliance
#44458 - 11/21/02 03:27 PM Re: Revoking a line of credit
LoisLane Offline
Diamond Poster
LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
202.9 (Reg B) requires notification within 30 days of taking this action. I believe a reason must be given.
Last edited by Lois Kohn; 11/21/02 03:28 PM.
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