When we evaluate for our courtesy ODP, if an account only has Social Security deposits, we normally don’t reward ODP because these are protected funds if offset is needed. Is this still the case?

Are we violating anything by doing this? We have placed it in our policy that you must have other sources of deposits besides government benefits. I am thinking we may have a fair lending issue.

SSI is a proxy for age and overdrafts are credit.

1+1=2

Thanks Randy - do you know if there is anything new on the right of offset with SSI and overdrafts?

It is a non-issue last I heard.

Accepting a direct deposit of an SSA payment into an overdrawn account of the SSA beneficiary can cure the overdraft, and it is not an offset. Using direct deposited SSA funds in account A to cure an overdraft in account B by moving the funds from one account to the other IS an offset if it's done unilaterally by the bank.

Thanks John - do you know where I can obtain more information on this to present to get our current methodology changed? I thought I recalled a court case but don't know the specifics.

thanks!