The agreement grants Chase a right of set-off and a UCC Article 9 security interest in all of a customer's accounts to satisfy any debt owed to Chase or its affiliates, including joint account funds for any owner's debt, and explicitly asserts this right extends to deposited federal benefit payments including Social Security to the extent permitted by law.
This analysis describes what Chase's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision asserts broad set-off rights across all accounts, including joint accounts and deposited federal benefit payments. Federal law, including 31 C.F.R. Part 212, restricts financial institutions from garnishing certain federal benefit payments; the agreement's qualifier 'to the extent permitted by law' acknowledges this constraint but does not eliminate the tension, and practical application requires account-level analysis of protected versus non-protected funds.
Interpretive note: The practical scope of set-off against federal benefit payments depends on the operational implementation of 31 C.F.R. Part 212 protections and the commingling of funds in the account; the agreement's qualifier 'to the extent permitted by law' leaves the operational boundary dependent on regulatory and judicial interpretation.
Under this clause, Chase may apply funds from any account, including joint accounts, to satisfy debts owed to Chase or its affiliates without prior notice, and the agreement asserts this extends to deposited Social Security and other federal benefit payments to the extent permitted by law. Customers who receive federal benefit payments by direct deposit should be aware that applicable federal protections may limit but do not necessarily eliminate Chase's set-off rights depending on the timing and commingling of funds.
Cross-platform context
See how other platforms handle Set-Off and Security Interest Including Federal Benefit Payments and similar clauses.
Compare across platforms →"If you owe a debt to us or any of our affiliates (either now or in the future) that is due or overdue, you grant us a right of set-off to, and a security interest in, all of your accounts to secure the debt and, as a consequence, we may use funds in any of your accounts to pay all or part of that debt. If your account is a joint account, we may use the funds in the joint account to pay the debt of any account owner. Our security interest will be governed by Uniform Commercial Code Article 9, whether Article 9 applies by its terms or not. We do not have to give you any prior notice to apply the funds except as required by law. To the extent permitted by law, you expressly agree that our rights extend to any federal or state benefit payments (including Social Security benefits) that had been deposited to your account.Excerpt from Chase's Deposit Account Agreement
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This provision asserts broad set-off rights across all accounts, including joint accounts and deposited federal benefit payments. Federal law, including 31 C.F.R. Part 212, restricts financial institutions from garnishing certain federal benefit payments; the agreement's qualifier 'to the extent permitted by law' acknowledges this constraint but does not eliminate the tension, and practical application requires account-level analysis of protected versus …
Under this clause, Chase may apply funds from any account, including joint accounts, to satisfy debts owed to Chase or its affiliates without prior notice, and the agreement asserts this extends to deposited Social Security and other federal benefit payments to the extent permitted by law. Customers who receive federal benefit payments by direct deposit should be aware that applicable …
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