What can I do if my bank cancels or cannot honor my line of credit?

18 Mar What can I do if my bank cancels or cannot honor my line of credit?

Generally a bank cannot legally cancel a contract to lend money – provided the borrower is in compliance with all the provisions of the loan agreement.  However, when a line of credit matures, the bank is not required to renew the loan unless there is a written provision in the (maturing) contract.  If a bank chooses not to renew the credit line, you must seek financing elsewhere.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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