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 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?
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?
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?
Can someone please define or explain right of offset?
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?
Do we have the right of offset from a checking or savings account to collect on a past due/charged off credit card?
What is our right to offset a delinquent personal loan with a DBA deposit account bearing the same social security number?
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?
We have been given notice of Chapter 7 bankruptcy on a small unsecured consumer loan that was 12 days late as of the date of notice. This borrower also has a checking account at our bank. Once notice is given, are we stayed from taking action on the bank's right of offset on this deposit account?