Settlement and other accounts at same bank

You may have a problem settling if there is equity in your home. Wells tends to be fairly aggressive. They can also offset your checking/savings account to pay your credit card. Just did some googling.....

Wells can and will take the money in your accounts to satisfy your past due obligations to them. It's called the "right of offset." I would take my money out before anything else, otherwise your new starting point in the negotiations is going to be a lot worse where they have all the cards (no pun intended) and you have none.

Ive been looking at this too... with BofA though.

I keep finding this-

Federally chartered and regulated banks (i.e. Bank of America, Wachovia Bank, Wells Fargo) have the freedom and authority to exercise their "Right of Offset" on secured, but not unsecured accounts.

I guess better safe than sorry, move your money.

ioalot is absolutely correct. Of course, this is not the case with business accounts, as the same consumer protection laws don't apply to business accounts.

This being said, I can tell you that typically credit card divisions don't have access to savings/checking account information, and if they do I have never encountered a situation where a creditor representative mentions these accounts, BUT I always inform my clients that it's best if they leave any savings/checking accounts dormant with any bank with which they're attempting to negotiate a settlement. If you'd like you can start using the savings/checking account again after you are finished with the debt negotiation process.

Regarding Wells Fargo and settlements, it depends on what type of account you're attempting to settle. I have seen lines of credit settle for as little as 20%, but credit card accounts are more difficult.

From US Dept of Treasury: "However, federal law limits what a bank can do in some cases. For example, federal law won???t allow a bank to offset your deposit account to pay off your consumer credit card account."

http://www.helpwithmybank.gov/get-answers/bank-accounts/right-of-offset/faq-bank-accounts-right-of-offset-01.html

jd...

Im in a similar situation as you, only with BoA. I have checking, savings er a big $3, and my 1st and 2nd mortgage with them. I also have a 17k cc and a business card with them. I am weary that they may attempt to deduct payment from my checking if I stop paying the credit cards even though it seems they arent supposed to.

I dont know why equity in your home would affect your credit card settlements, hasnt affected my negotiations.

Good Luck