I have an automobile loan with a privately owned finance company. On the back of the contract, it says verbatim:
Right to Set-Off: The law gives us a right to set-off in any of your property in our possession. When we assign (transfer) our rights in this Contract, the Assignee will obtain the right to set-off. If you default, the Assignee may exercise the right to set-off and apply any of your property in the Assignee's possession, including deposit accounts, to sums you owe on this Contract.
Does this mean that if I become past due for $800, they can withdraw $800 from my checking account with PNC Bank? If so, how would they go about doing that? A friend had a similar situation occur with a leasing company that he was leasing a large copy machine from. He fell behind several payments and the company simply withdrew $2,000 from his account. I looked at the contract and it said basically the same thing that I referenced above that mine does.
Right to Set-Off: The law gives us a right to set-off in any of your property in our possession. When we assign (transfer) our rights in this Contract, the Assignee will obtain the right to set-off. If you default, the Assignee may exercise the right to set-off and apply any of your property in the Assignee's possession, including deposit accounts, to sums you owe on this Contract.
Does this mean that if I become past due for $800, they can withdraw $800 from my checking account with PNC Bank? If so, how would they go about doing that? A friend had a similar situation occur with a leasing company that he was leasing a large copy machine from. He fell behind several payments and the company simply withdrew $2,000 from his account. I looked at the contract and it said basically the same thing that I referenced above that mine does.
