Setoff

"Right of Setoff" is used frequently by credit unions when trying to collect on past-due debts owed by members. Unfortunately, many credit union employees do not understand the legal requirements and procedures necessary to use this process. The risks of using the process incorrectly can be costly to your credit union. On the other hand, successfully using the right of setoff can protect your credit union from significant financial losses.


Do you know when the right of setoff is allowed and when it isn't? Do you know if your credit union has a statutory or contractual right of setoff? Do you understand the financial risks of using your setoff rights incorrectly? If you don't know the answers to these questions, make sure to attend this valuable webinar.

Covered Topics

  • What are the legal requirements to create a "right of setoff?"
  • What is the difference between a contractual right of setoff and a statutory right of setoff?
  • What are the differences between setoff, garnishment, and foreclosure of security interest, and why are these terms frequently misused?
  • What happens when a third party is competing with your credit union's right of setoff?
  • How does the automatic stay in bankruptcy affect the right of setoff?
  • When is the right of setoff absolutely prohibited?
  • How does one handle notice to the member?
  • What is sample contractual language that can help your credit union exercise its setoff rights?
  • What are the liabilities that can be incurred when setoff is done incorrectly?

Who Should Attend?

All loan and deposit personnel, legal counsel and compliance officers.
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   OnDemand Recording - $215   
   CD-ROM - $245