{"id":2539,"date":"2021-05-28T18:09:43","date_gmt":"2021-05-28T18:09:43","guid":{"rendered":"https:\/\/albanknews.com\/?p=2539"},"modified":"2021-05-28T18:10:42","modified_gmt":"2021-05-28T18:10:42","slug":"2539","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=2539","title":{"rendered":"Compliance Q&#038;A: Returned Check &#038; Social Security Benefits"},"content":{"rendered":"<p><strong>Q: <\/strong>A customer deposited a check into a savings account, the funds from which were made available, and then transferred the funds into a savings account. The savings account receives social security benefits. The check is now being returned. Can the bank exercise the right of setoff against the savings account?<\/p>\n<p><strong>A: <\/strong>This is a fine-line question that has several moving parts.\u00a0 First, the bank potentially would be able to offset against funds in the savings account to the extent those funds are not protected under 31 CFR 212. This requires the bank to calculate the \u201cprotected amount,\u201d in accordance with that section, with any remainder being available for setoff.<\/p>\n<p>But when an account receives federally protected funds, like in this scenario, whether the bank can exercise the right of setoff against those funds as well has not been clearly established by courts or available regulatory guidance. While some jurisdictions appear to permit this practice, the law is not uniform. Therefore, unless the bank confirms the specific stance on the issue with the bank\u2019s jurisdiction or further clarification is obtained, C\/A advises not setting-off against federally protected funds.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call <strong>(888) 353-3933<\/strong> or email <a href=\"mailto:info@compliancealliance.com\"><strong>info@compliancealliance.com<\/strong><\/a> and ask for our Membership Team.<\/p>\n<p>For timely compliance updates and resources, <a href=\"http:\/\/eepurl.com\/bjXIVv\"><strong>subscribe to <\/strong><strong>Bankers<\/strong><strong> Alliance\u2019s email newsletters<\/strong><\/a>.<\/p>\n<p><strong>Not a member?<\/strong> Learn more about membership with Compliance Alliance by attending one of our live demos:<\/p>\n<ul>\n<li><a href=\"https:\/\/compliancealliance.com\/news-events\/event\/live-membership-demo-05-25-2021\"><strong>Live Demo on Tuesday,\u00a0 May 25<\/strong><strong><sup>th<\/sup><\/strong><strong>, \u00a0@ 10:00 am CT<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/compliancealliance.com\/news-events\/event\/live-membership-demo-05-27-2021\"><strong>Live Demo on Thursday,\u00a0May 2<\/strong><strong>7<\/strong><strong><sup>h<\/sup><\/strong><strong>, \u00a0@ 1:00 pm CT<\/strong><\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q: A customer deposited a check into a savings account, the funds from which were made available, and then transferred the funds into a savings account. The savings account receives social security benefits. The check is now being returned. Can the bank exercise the right of setoff against the savings account? A: This is a fine-line question that has several moving parts.\u00a0 First, the bank potentially would be able to offset against funds in the savings account to the extent those funds are not protected under 31 CFR 212. This requires the bank to calculate the \u201cprotected amount,\u201d in accordance [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1070,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19,33,23],"tags":[],"class_list":["post-2539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-compliance-qa","category-publications","has_thumb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/albanknews.com\/wp-content\/uploads\/2017\/11\/compliance-alliance.png?fit=800%2C800&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/s4Y3P2-2539","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2539"}],"version-history":[{"count":2,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2539\/revisions"}],"predecessor-version":[{"id":2542,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2539\/revisions\/2542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/media\/1070"}],"wp:attachment":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}