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#2125126 - 04/05/17 03:59 PM Right to Offset
Yankees27 Offline
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Joined: Oct 2015
Posts: 10
Are we allowed to use Child Support payment to Offset a loan? I know we cannot use Social Security , but I can not find anything that would prevent us from the child support money. Our agreement states "You grant us contractual security interest in all deposits in your accounts, and we have the right to set-off any of your money or property in our possession against any amount you owe us."

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#2125168 - 04/05/17 05:49 PM Re: Right to Offset Yankees27
Rocky P Offline
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Joined: Jun 2003
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That may be state law - BUT, IMHO

That is taking a HUGE reputational risk. Even if you could, would you want the newspapers to start off with the story about the big mean nasty bank taking food out of a baby's mouth for a missed payment.

I would only due that with the blessings of counsel, the CEO and head of marketing.
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#2125192 - 04/05/17 07:19 PM Re: Right to Offset Yankees27
Reg Warrior Online
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Posts: 195
It is a matter of state law. In my state, child support is not listed as one of the 13 possible exemptions; in addition you must leave an aggregate sum of $1,000 in the savings/checking accounts after the offset.

Also look for "setoff" in place of offset". My state uses them interchangeably.

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#2125236 - 04/05/17 10:43 PM Re: Right to Offset Yankees27
John Burnett Online
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John Burnett
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Cape Cod
The whole question of setoff/offset can be a real can of worms if not handled carefully. And the last person in your bank who should be making setoff decisions is a teller who is aware of someone's charged-off account or loan. Letting untrained, uninformed people mess with setoff can cause you untold grief. Have someone in your bank study the question in light of your state's laws, and use an attorney in that discussion. Put together a policy on use of setoff that restricts its use to selected circumstances and individuals who know what the heck they are doing.
Last edited by John Burnett; 04/05/17 10:59 PM.
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