Answer by Andy Zavoina:
226.12(d) of Reg. Z generally prohibits you from taking funds from a deposit account to a credit card account. Also, you cannot debit retirement accounts. Otherwise, while it is certainly best to include the right to offset in your contract, it should also be standard in your deposit agreement or signature card.
Answer by Barry Thompson:
This is a question best directed to legal counsel for your financial institution. Right of offset is governed by state law. I have worked with organizations that would use the right in these cases and others who felt it was too risky. Each financial institution must make its own judgement based on case law and their attorney's opinion.
First published on BankersOnline.com 3/5/01