The Benefits of Banking Mediation

The Benefits of Banking Mediation

Legislation that was approved by the Maryland General Assembly on April 12, 2010, set a precedent for what would later become one of the best resources homeowners have to assist with stopping a foreclosure on their home—mediation.  In the process approved in Maryland, homeowners facing foreclosure were provided the opportunity to pay a $50 fee and request mediation with the lender or bank holding the home loan.  In this mediation proceeding, the homeowners were able to sit down face-to-face with the bank’s representative, a judge and a mediator to discuss options such as lowering the rate of the loan and changing the loan’s terms to make the home more affordable based on the homeowner’s changed circumstances.

This is just one example of the enormous benefit banking mediation can provide to consumers who are involved in a dispute with a banking or lending institution over everything from foreclosure notices to negligence to contracts.  Banking mediation is a form of Alternative Dispute Resolution (ADR) allows the banking institution and the customer to meet face-to-face with a neutral, third-party mediator who is trained in banking law.  The process is completely confidential and often one that results in quicker resolution to a problem than other forms of dispute resolution like litigation allow.  Additionally, it is cost-effective, insuring that all parties involved in the dispute are able to reach a mutual agreement quickly and cheaply.

The banking industry is a playing ground that is ripe for disputes.  This is why banking mediation as Alternative Dispute Resolution of is such a useful tool in settling conflicts that arise in the day-to-day process of banking and financial transactions.  Disputes that can be easily solved through banking mediation include: debt collection, breach of contract, guarantor disputes, professional negligence, contributory negligence, liability issues, personal injuries, disputes on policies, assessment of damages, banking contracts, and liquidations.

Share on Social Media

MEDIATOR OF THE MONTH: Jeffrey Grayson
The Benefits of Banking Mediation