 TITLE: What Is Right of Offset? CONTENT: Right of Offset Defined\n-----------------------\nGenerally, a bank or credit union can take your money from a deposit account, like a checking or savings account, to cover a separate debt you owe to the same bank or credit union if you've fallen behind on making payments. But that right doesn't necessarily extend to every type of debt. For example, a bank typically could use the right of offset to cover an overdue payment on a mortgage or auto loan but not to cover an overdue payment on a credit card.\nRight of offset also is known as right of setoff.\nWhen a financial institution transfers money under its right of offset, that action might lead to interest penalties on a CD, bounced checks or even a negative account balance. END