National City is now offering some customers a $200 check if they agree to close their unused home equity lines of credit.

Financial Times reports:

“The bank’s initiative, which was launched at the end of July, encourages National City customers to surrender their unused home equity lines by waiving fees it would normally charge for closing the line and by writing customers a $200 cheque.

“We are giving customers an opportunity to close their lines without incurring termination fees and then we give them a reward to thank them for their business,” said National City.”

The National City plan is certainly more generous than the lenders who continue closing HELOC lines without notice or option. Although most customers won’t want to close a line for $200, this can be a good deal for customers who were already planning to close a line. Instead of paying the usual $350 cancellation fee, they can walk away with a check.

National City seems to be offering this deal to only some borrowers. But, it is not yet clear what the recipients have in common.

See Also:

List of Lenders Freezing Home Equity Lines of Credit

HELOC Freeze Help

Tags | Heloc, heloc crisis, heloc freeze, mortgage crisis, National City