Can a creditors take money from your checking account without your permission to satisfy loan you have with them?
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The "right of offset" is a common-law right that has been codified and limited in most states. In general, a bank or credit union does not need to obtain permission from its depositor or member to offset a debt in default against the depositor's or member's account.
There are specific federal prohibitions against using such an offset, however, to collect a credit card balance in default, unless the deposit account is pledged as collateral or the depositor otherwise provides specific permission. With or without permission or the right of offset, a creditor can bring suit in court to obtain a judgment against an obligor, and then use state law provisions to attach funds in a deposit account to satisfy the judgment if it remains unpaid.
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The "right of offset" is a common-law right that has been codified and limited in most states. In general, a bank or credit union does not need to obtain permission from its depositor or member to offset a debt in default against the depositor's or member's 