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#809222 - 09/05/07 03:38 PM Privacy & Right of Setoff
Jodi Offline
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Jodi
Joined: Jun 2002
Posts: 87
A customer is past due on a loan and we are wanting to use the right of setoff on deposit accounts (these deposit accounts ARE NOT the collateral securing the loan). However, the deposit accounts are jointly held by this customer and 2 other family members. Would it be a breach of privacy to also notify the 2 other family members that we have or intend to setoff these deposit accounts? Are we under any obligation to even notify the 2 other family members?

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#809611 - 09/05/07 08:32 PM Re: Privacy & Right of Setoff Jodi
Jodi Offline
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Jodi
Joined: Jun 2002
Posts: 87
Does anyone have any input or should I post this in a different forum?

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#810017 - 09/06/07 01:48 PM Re: Privacy & Right of Setoff Jodi
LoisLane Offline
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LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
The best thing to do is call your bank's attorney to ask this question. In the past, ours would not let us do a setoff where the names on the loan/deposit accounts didn't match.

It may have been a state-law issue--or not.
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#810588 - 09/06/07 07:37 PM Re: Privacy & Right of Setoff LoisLane
Jodi Offline
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Jodi
Joined: Jun 2002
Posts: 87
Thanks for your reply. The bank attorney and I had been discussing the privacy issue which I recommended it be thoroughly checked into before acting.

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