Question of the Week
Friday, November 2, 2018 7:25 AM

Question:  Can we offset a debt on a loan against an account with a joint that does not appear on the loan?

Answer:  Yes.  As long as the member has an ownership interest in the deposit account, you may offset against that account in most circumstances.  This may cause the other joint accountholder to become upset, especially if that joint is the primary contributor to the account, but it is permissible.

The credit union can presume that funds belong to both members for such purposes, and may offset against any loans made to either joint, even if both are not included on associated obligation.