Can a bank share a client’s financial information with another person?

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Can a bank share a client’s financial information with another person?

My husband, sister, brother in law and I owned rental property together through

an LLC. When we sold the property, the bank gave my sister and brother in law

who have power of attorney our financial information that we shared with the

bank to get approval for a loan. We were not aware that the bank was going to

share this information. We had provided it but it was confidential. Now my sister

and her husband know our financial status and we are very upset about this. Is this practice against the law?

Asked on February 13, 2017 under Business Law, Arkansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

It depends on what the power of attorney stated. If it gave your sister or brother-in-law authority to conduct banking matters for you, then the bank could do this: in creating a power of attorney authorizing them to conduct banking on your behalf, you gave them permission and authority to view information you submitted to the bank for a loan.

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 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.

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