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

Answers:

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.


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