Florida Law Protects Lenders Against Frivolous Claims

1. Florida’s Banking Statute of Frauds was created to address an increase in lender liability lawsuits in the 1980s.
2. The statute makes it difficult for plaintiffs to maintain tort-based claims related to oral promises in written loan documents.
3. The statute requires loan documents to be in writing for a borrower to sue a lender on certain types of claims.
4. It prevents borrowers from pursuing claims based on oral representations or understandings, effectively barring tort claims that may have been considered valid under common law. 1. Florida’s Banking Statute of Frauds, Florida Statutes § 687.0304(2), requires credit agreements to be in writing and signed by both the creditor and debtor.
2. The statute aims to protect lenders from liability for actions or statements made during negotiations that do not result in a written credit agreement.
3. The statute bars claims based on oral representations not contained in a written credit agreement.
4. It aims to prevent unfounded fraudulent claims and perjuries by requiring credit agreements to be in writing.
5. The statute prevents lenders from being harassed by claimed oral promises made in negotiations not resulting in written credit agreements. 1. The Florida statute is strictly construed to prevent fraud and protect lenders from liability claims brought by borrowers.
2. Credit agreements not in writing or not evidenced by a note or memorandum signed by the party sought to be charged are voidable and unenforceable under the Banking Statute of Frauds.
3. The statute benefits borrowers by requiring credit agreements to be in writing, preserving the negotiations and terms of the transaction.
4. Florida courts have prevented borrowers from using oral misrepresentations or equitable claims offensively through the statute, but have allowed such theories to be used as affirmative defenses to lender claims of loan default.

https://www.jimersonfirm.com/blog/2012/06/floridas-banking-statute-of-fraud-section-of-statute-687-0304-weeds-out-frivolous-borrower-claims/