Q: Can my car lease be repossessed from defaulting on a unsecured credit card within the same bank?
I am looking into joining a debt relief program and before doing so, I am concerned that not paying/defaulting one of my unsecured credit card debts that will be included in the program with Chase Bank will then cause them to repo my vehicle which is also a lease through Chase Bank. I also have a checking account with them as well. What is the likelihood any of those would be affected from this credit card with them?
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A:
When you default on an unsecured credit card, it doesn’t automatically lead to the repossession of your leased vehicle. Typically, the repossession of a vehicle is associated with missed payments on the auto lease itself, not other unrelated debts. However, banks can cross-check their records, and defaulting on one type of account may raise red flags.
It's important to know that your checking account with Chase Bank could potentially be affected. If you owe money on the credit card, Chase might offset the debt with funds in your checking account. This is something to consider carefully, especially if you rely on that account for daily expenses or direct deposits.
Before joining a debt relief program, it’s wise to communicate with Chase Bank directly to understand their specific policies and how they may handle your accounts in this situation. This way, you can make an informed decision and possibly negotiate terms that won’t jeopardize your vehicle or other financial assets.
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