Right of Offset

What is right of offset?

Right of Offset Definition: The right of offset is also known as set-off and is what occurs when a bank transaction is adjusted to recover money from a customer that owes on a loan or credit card from their bank account.

This often occurs as a transfer from the consumer’s bank account to their loan and does not require expressed permission by the client, as it is agreed to as a condition of the loan or approval of the credit product. The right of offset is typically included as a clause in the account, which gives the bank or financial company this right.

Other Personal Loan Terms:

• Co-Borrower
• Collateral
• Cosigner
• Cost of Borrowing
• Debtor