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What is a lien and how does it affect you?
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A banker’s lien is a legal right that allows a bank to retain a customer’s funds or property until the customer repays a debt owed to the bank. It is a passive right, meaning the bank can exercise it without needing prior court approval. For instance, if a customer has a savings account with a balance and also owes money on a loan from the same bank, the bank can mark a lien on the account and adjust the credit balance to recover the outstanding dues. This is often done through the right of set-
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