We have been hearing rumors that our customer, ABC Corp., is going to file bankruptcy. They have a loan with us that is current and they have a deposit account. Can we use setoff to grab funds?
What is the difference between setoff and offset?
When a former customer who left owing us money shows up at the teller window to cash a check written to him by one of our account holders, can we seize the proceeds of the check to go toward what we’re owed?
Can a bank apply funds from a Social Security direct deposit to a charged-off account?
A minor had a savings account opened when she was four years old with her mother as the custodian/joint owner. The account was overdrawn and charged off. The minor, who is now 18, wants to open a checking account as she is now working. Can the bank offset this account to pay the charged off amount?
Does a bank have the legal right to deduct an Internet scam-related loss incurred by an adult daughter from her parents and other family members' bank accounts?
What is needed in order to be compliant if the loan department places a hold on funds in a deposit account? For example, a customer is habitually late and has funds in their deposit account (the loan department will place holds on dollars in a deposit account).
We have a corporation deposit account that owes us money. In reference to Right of Set Off, may we take that money from a personal account that one of the signers of that corporation has with us?
Does the bank have the right to offset a corporate account for a personal checking account debt?
We have an employee who has been terminated. Her checking account is in an overdraft status. Can we offset her last pay, which is direct deposited into her savings account, to cover the overdrawn checking account? It would use all of her net pay to cover the overdraft.