Is it legal for a bank to deny a loan based on borrowers legal status in the country
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it legal for a bank to deny a loan based on borrowers legal status in the country
Is it legal for a bank to deny a loan
based on the borrowers legal status in
the country even after the borrower is
approved and provided all nessesery
documentation
Asked on September 26, 2018 under Business Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, this is perfectly legal. There is no obligation on a a bank to provide loans: it is voluntary for them to do so. They can refuse loans based on what they believe are excessive risks. You have restrictions on your ability to work, and as a non-citizen, are less tied to this nation and more likely to leave and return to your country of origin if things here don't work out. Those factors increase the risk associated with loaning to you, and therefore are legitimate grounds to deny the 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 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.