Banks & Banking - ECOA – Loan Denial – Reason Given

Teresa Bruno, Opinions Editor//March 30, 2016//

Listen to this article

Trapp v. SunTrust Bank (Lawyers Weekly No. 003-009-16, 9 pp.) (Catherine Eagles, J.) 1:15-cv-00937; M.D.N.C.

Holding: Plaintiff alleges defendant-bank told her over the phone that the loan she and her husband had applied for was denied because of a fraud warning that her husband’s social security number was that of a deceased person; however, the bank contends that the loan was denied – as its denial letter said – because additional information was required. Considering only the allegations of the complaint and the contents of the loan denial letter, the court cannot say whether the loan application was complete or incomplete as a matter of law.

Defendant’s motion to dismiss is denied without prejudice to a summary judgment motion.