BANKS’ RIGHT OF OFFSET OR SETOFF
In some situations banks have rights that extend beyond legal limitation barriers.
Limitations Acts are designed to provide a regulatory framework for our legal system forcing actions to be taken within reasonable timeframes. This effectively stops the accrual of interest over a protracted term and prevents elements of undue hardship being imposed through negligence or inaction.
However, Limitations Acts put time limitations on “legal” actions being pursued, not “lawful” actions and there is a difference.
Banks may not resort to the use of the courts or other “legal” mechanisms for the collection of debts after the expiration of the limitation periods set out in the Limitations Act. Nonetheless, they may use other “lawful” means of collection such as collection calls or the right to setoff, or offset, against monies on deposit in accounts under their administration or control.
For more information call the office at 519-646-2222