ENROLLMENT UPDATE SCRIPT - ALL AGENTS MUST Identify when they enrolling “same bank same debt” creditor accounts. Impact on deposit accounts (checking or savings) at financial institutions that are also enrolled creditors. In response to an increase in client complaints regarding funds withdrawn without notice by their bank or credit union under the “right of offset” we will now require all vendors to inform clients of this possibility during the enrollment call. Credit Unions use the right to offset at their discretion and use will vary by financial institution. Credit Unions commonly require members to sign an agreement giving the credit union a lien on any and all accounts if the member misses a payment. While federal rules may prohibit a bank from applying the right of offset to consumer credit card debt, there are some exceptions and banks can offset missed payment on personal loans or lines of credit.
Model Answer
“I see you are enrolling (name of a financial institution), you should know that your agreement with them likely allows them to take money from your checking or savings account to pay a debt on another account you have with them such as a loan or credit card. We strongly recommend you open a checking and/or savings account with a financial institution that is not an enrolled creditor and only keep funds in this account. While this may be inconvenient, it is the safest option since any funds in any account you have with any institution that is also a creditor are at risk of being withdrawn from the account.