"Right to Sett off" is a provision within Common Law which allows a creditor such as a bank to remove funds from your accounts be they savings,checking or as bonds or GIC within that bank that have matured. This can be done by them without court order for up to the sum for any money owing them from service fees to credit card debt. They have a right to remove from any branch within the bank network ...not just the branch you deal with. Therefore it is advised not to have money in any branch of a bank you owe money too.

What do you mean by set of? Can u explain, I am sorry what this term technically mean?

They have every right to exercise their Right to Setoff so...do not repeat do not leave any money in accounts with any branch of that bank.

TJ. thanks again for your response, what about the 2 account where the collection forged/changed the last day of activity?
one last question, do you think it will be a good idea to do my banking at the banks where i owe them debts previously? or they will take my deposit cash and cheques?

They would not have paid that much for the account...and at this point they are better off with a small piece of pie then no pie.
Worst they can say is no an get nothing.

Thanks TJ for your response. Most of my debts disappeared from my credit report except for two (MBNA and Fdr banque national) still shows under "collection accounts" I don't know why? The last day of activities on these accounts should be in 2005 but under collection the LDOA shows 2007 ! I am sure the collection agencies forged this date. I am 100 percent sure I didn't do any payments nor got in contact with the collection agency since 2005 so not sure how can I correct that or forced equinox to fix it? As for paying back u think 20% is a reasonable offer they will accept?

As you are well aware the Statute of limitations on these 7 year old debts expired 5 years ago. That is assuming you made no payments or made no written and signed acknowledgments of these debts during the first 2 years.
Hence the collection agency and or original lender has no legal recourse to collect on these debts, In fact they should also no longer be showing on a credit report as they can only be reported for 6 years from last activity on the account by you.
So now all you are left with is a moral issue as to wether you wish to pay off anything of these debts.
If you feel you must...then say 20% offer but insure you have all agreements in writing and signed prior to sending any money.
Once these debts have been removed from your credit report they can not be relisted after the 6 years has passed....but also have that as a stipulation in your written offer and in there written response.

Insure you have a signature of managment at the agency not some low life collector who is only interested in their commission and not your credit score.

what's the best approach to negotiate collection agencies to pay debts over 7 year old ( all debts past the statue of limitation)?? for sure i'm not willing to pay the total value of the debts unless they are seriously discountable! is this a good idea? do you think collections are willing to accept any offer on the dollar? anyone with experience on this subject please respond....