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#1880022 - 12/18/13 08:23 PM Right of Offset Social Security
djack Offline
New Poster
Joined: Feb 2009
Posts: 18
I thought I had posted this question a while back, so forgive me if this is a repeat, but I can't find it:

Do Indiana banks have the right to offset a payment from social security funds? One way or the other, can you point me in the right direction as far as code, if applicable?

Thanks!

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#1880077 - 12/18/13 09:40 PM Re: Right of Offset Social Security djack
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Right of offset for what? Federal law will prohibit the right of offset in certain situations.
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#1880263 - 12/19/13 05:01 PM Re: Right of Offset Social Security djack
Sonja Kriegsmann
Unregistered

If the customer overdraws the deposit account into which social security is deposited, the bank can be made whole from the next deposit of social security funds. This isn't really the exercise of the right of setoff.

If you're talking about another account (whether an overdrawn account or a loan that is delinquent), the bank is a creditor like everyone else and can't setoff against the social security funds.

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#1904637 - 03/12/14 06:49 PM Re: Right of Offset Social Security djack
Brenda Offline
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Joined: Apr 2009
Posts: 12
If you have an account that has both social security checks and other items deposited. I read if you have a delinquent loan you can take what is "other" deposits, you must leave the amount of the last two month's social security money in the account but you can take the rest, is this correct? Where do I fine guidance, not just "something I read"?

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#1915891 - 04/18/14 06:23 PM Re: Right of Offset Social Security djack
Security_Guy Offline
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Security_Guy
Joined: Aug 2007
Posts: 2
NW Ohio
I attended a Webinar on this earlier in the week to clarify advice I had been given concerning accounts with Social Security deposits. In a nutshell, do not offset the account.
Last edited by Security_Guy; 04/18/14 06:23 PM.
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#1916141 - 04/21/14 03:22 PM Re: Right of Offset Social Security djack
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Related thread

Any bank exercising a right of offset against any funds should be doing so based on specific advice of legal counsel.

The federal regulation that establishes a "protected amount" applies to garnishments, not a right of offset. The idea that the comingled funds in an account can be traced back to their sources on a pro rata basis is a flight of fantasy.
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