AS Randy suggests, you'll need to look to state law to determine whether a notice is required, the timing of that notice (in advance of offset, on the date of offset, etc.), and whether there is any required verbiage for the notice. Oh, and whether the notice must be delivered in any particular manner. For instance, in my home state of Massachusetts, when a deposit account is offset against a closed-end consumer debt covered by the state's Truth-in-Lending law, a notice must have been given before the loan was made that states the institution may make such a transfer. And a separate law relating to deposit accounts covers both consumer and non-consumer accounts requires that in the event of setoff of deposited funds to reduce a debt of the depositor to the bank, a written notice of the setoff must be sent "forthwith" by certified mail, return receipt requested, directed to the depositor's last-known address.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8