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Costa Rica: banks can not arbitrarily close accounts

Thursday, January 9, 2014

Banks can not act hastily , when it comes to closing a customer account.

That was the decision las month of the highest court of Costa Rica, the Constitutional Chamber of the Supreme Court, in a case involving a claim of a bank customer.

The right of a person to deposit funds in a bank is a commercial service of general interest, said the court, as opposed to a mere economic transaction.

As a result, a bank can not prejudice a customer without due process, which consists of two aspects.

First, the bank must justify the closure of an account.

Second, the bank must give reasonable notice to the client, who has the right to challenge the decision.

The court decision confirmed a 2011 lower court judgment, dealing with a similar issue.

For more information, please contact Randall Barquero at [email protected], or (506) 2257-3553