Latest Lending - Right of Offset Topics

New Escrow on Existing Loan

09/22/2019

We had a customer ask to start a voluntary escrow account on an existing loan. Do we need a new agreement?

Collecting On Delinquent Debt: Right Of Offset

08/28/2016

We have a very delinquent borrower whose spouse signed all the security agreements. The borrower has not been returning phone calls or other various attempts to contact him. He and his wife have a joint account, and the wife has a separate individual account. Last week the borrower endorsed a check to his wife, and she deposited it into her account. The check was proceeds from work subject to the security agreement. The wife has now completed 2 internet transfers to the joint account to cover insurance payment withdrawals. My question is can we place a hold on the wife's account, use right of offset, or any other suggestions to try to collect on the delinquent debt?

Does Right to Offset Work In Both Directions?

12/01/2014

Does the right of offset work in both directions? In other words, if we have an overpayment on a loan payoff, can that difference be credited to a charged off DDA account for that customer?

Debit Auto Loan for Overdrawn Checking Debt?

08/25/2014

Can you debit an auto loan for a debt owed on an overdrawn checking account or bad check if it is not specifically disclosed in the auto loan contract? This would increase the balance and interest that may be due on the original contract altering the agreement, correct?

Right of Offset from the Dormant Account

09/07/2009

We have a loan loss from two years ago and a dormant checking account from the same owner. Do we have the right to offset from the dormant account?

Right of Offset - Definition/Explanation

07/26/2009

Can someone please define or explain right of offset?

Electronic Right of Offset

08/20/2007

Our lending operations department (not credit card) would like to initiate an EFT through our third party vendor to debit our customer's deposit account to exercise our right to offset for amounts owed on our customer's loan. Our deposit account terms and conditions discloses our right to offset any amounts owed to the bank. We know that generally Reg E, Section 205.3 (c)(5) would allow the bank to electronically transfer funds between a customer's accounts without the customer's specific request under certain circumstances and that the official commentary provides that this exception to Reg E includes the right to initiate "electronic debits or credits to consumer accounts for check charges, stop-payment charges, NSF charges, overdraft charges, provisional credits, error adjustments and similar items that are initiated automatically on the occurrence of certain events." In order to exercise our right to offset electronically, the transaction will need to be processed through our third party vendor. Do we have any Reg E or other regulatory concerns in doing so?

Credit Card Offset

04/05/2004

Do we have the right of offset from a checking or savings account to collect on a past due/charged off credit card?

Right of Offset

11/03/2003

What is our right to offset a delinquent personal loan with a DBA deposit account bearing the same social security number?

Understanding Due on Sale vs. Right of Offset

06/03/2002

I have a construction loan promissory note that contains the "Right of Setoff" paragraph in it,along with the normal "due on sale". What are the ramifications of this combination on the promissory note?