California Financial Code Section

08/23/2012

Bank “Setoffs”

147075314

“A bank has an equitable right to set off a matured debt, owed the bank by a depositor, against funds in the customer’s demand deposit account.” In plain English, this means that if you owe a bank money, they generally have a right to take that money out of your bank account to pay off the debt. This is known as the “right of set off,” or “right to set-off,” and is ancient English Common Law. However, this has resulted in cases where consumer bank... Read More