Right of Setoff on Depost of Stimulus Check

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Question:

Can a bank setoff an overdraft with the deposit of a stimulus check or is this considered a government benefit that cannot be used for setoff?

Answer:

Let's not call this setoff unless the deposit is made to an account that's different from the one that is overdrawn. There is nothing special about the Economic Stimulus payments that protects them from setoff, attachment or other debt collection efforts. They are not Social Security or similar payments.

First published on BankersOnline.com 8/25/08