The first time you used setoff to recover an overdraft from a CD, you'd have some explaining to do -- not to regulators or lawyers, probably, but to your customer, who will now be in a "Catch 22."
You tell the customer that you had the right to do it. The customer says "OK, then I want my CD closed out early so my money is protected." You counter with "You can't withdraw early from the CD," or you say "If you close the CD early, you'll pay a penalty." The customer's money is being held hostage.
Yeah, I know the tempting comeback is, " Maintain your checking account properly, and you have no problem."
I guess my concern here is that no one wins this spitting match, especially if the customers start ccomplaining to the outside world.
[This message has been edited by John Burnett (edited 02-26-2001).]