Can a national bank use 'right to offset' and withdraw funds to pay debt from a bank other than their own wihout permission from the account holder? (Bank A withdraws funds from bank B without consent). This actually happened to us recently.
Also, in the state of Georgia, can a bank offset funds without notification to the account holder? They intercepted a payroll check that was electronically deposited.
Untitled
A "right of offset" involves reciprocal obligations between two parties, and it would not be permitted for Bank A to offset your debt to it against an account in Bank B, unless Banks A and B were actually one entity (Bank A doing business as Bank B, for example). Discuss the offset with local legal counsel, who can also provide you an answer on the state law issue involved in your question about offset notices.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
A "right of offset" involves reciprocal obligations between two parties, and it would not be permitted for Bank A to offset your debt to it against an account in Bank B, unless Banks A and B were actually one entity (Bank A doing business as Bank B, for example). Discuss the offset with local legal counsel, who can also provide you an answer on the state law issue involved in your question about offset notices.
