– Florida’s Banking Statutes of Frauds was enacted to prevent borrowers from pursuing tort claims based on oral promises or understandings not contained in written loan documents.
– The statute requires loan agreements to be in writing and signed by both parties in order for a borrower to sue a lender on certain claims.
– Claims that are based on alleged oral representations not contained in a written credit agreement fail as a matter of law under the statute. 1. The Banking Statutes of Frauds is designed to prevent unfounded fraudulent claims by requiring credit agreements to be evidenced in writing.
2. The purpose of the statute is to prevent perjuries and intercept actions based on loose verbal statements or innuendoes.
3. It prevents lenders from being ensnared in claimed oral promises made during negotiations not resulting in written credit agreements.
4. The statute is strictly construed to prevent the fraud it was designed to correct and is reluctant to take cases from its protection by Florida courts.
5. Credit agreements not in writing or not evidenced by a signed note or memorandum are voidable and unenforceable, but not void.
6. The statute benefits borrowers by requiring credit agreements to be in writing and preserving the negotiations and terms of the transaction.
7. The statute serves its purpose of restricting a borrower’s ability to sue creditors by preventing borrowers from using oral misrepresentations or equitable claims offensively.
8. Florida courts have preserved the ability to assert such theories as affirmative defenses to lender claims of loan default.
https://www.jimersonfirm.com/blog/2019/05/florida-banking-statutes-frauds-oral-agreements/
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