We charged off a customer's car loan. He has a checking account and received SSI benefits as well as depsoits from other sources from time-to-time. Can we exercise our right to setoff on this account?

I have read about exceptions for overdrafts that are on the same account. I reviewed Courtwatch but still am unclear.

You cannot offset SSI payments to pay a car loan.

No type of loans, right?

We have on our signature cards a section on Setoff and it states that we may set off the funds in this account against any due and payable debt you owe us in the future...it also states the right to setoff does not apply to IRA or other tax-deferred accounts...and then a statement on hold harmless as a result of the setoff.

Not worth the paper it's written on since the off-set against SSI is a violation of law. Several cases, especially in CA, concerning the offset of SSI all have been ruled against the banks that I have seen.