Settling cards with same bank who holds mortgage

I have unfortunately defaulted on a Fifth Third bank credit card, and one of the letters they sent me claimed that if I had a house or car financed through them, they could take the house or car to cover the credit card debt, even though the card was unsecured. Whether that is true, or they were blowing smoke, I don't know.

I don't think they could attach the home to the credit card without getting a judgement and then using the judgement to forclose the home. The disadvantage you have is they know exactly how much equity is in the home and if it is worth going after.

Good point. I better not try to settle these.

It's kind of like what happened with another bank... I also have a biz checking and an unsecured business line of credit with this different bank, and when I was late paying the line of credit they went ahead and offset that checking account without warning. Which sucked b/c I had that money budgeted for something else at the time.

So yeah who knows what Chase would try to pull. Don't want to find out.

If you are having trouble making your CC payments, have you talked with Chase to see if you are a candidate for their hardship program? You're interest rate would be reduced and might make the payments more manageable. I don't know if you need to be late to quality; just explain why it is tough right now to make payments (lowered income, unexpected expenses, etc). Best of luck.

i've settled 3 with chase and my mortgage is with them- no porblems- they (nor I) ever mentioned it.

settled 3 cards with chase- and they hold my mortgage- no one ever mentioned it.

They actually suggested we miss a house payment to make the CC payment...I told them well, the mortgage is with you guys so that'd be stupid...Point is they don't know...I've settled our 3 chase accounts, they never mentioned it....In fact on some of the cards we settled, we still get letters saying the accounts are not eligible for settlement at this time...They are too Big and clueless....