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Ohio bank offers lure to close home equity lines

Friday, September 05, 2008

CLEVELAND — National City Corp. is offering a $200 incentive so some of its home equity customers will close their credit lines.

That strategy appears based on a concern over higher risk due to declining home values. Various banks have started freezing home equity lines of credit, which halts further activity.

Cleveland-based National City is offering the $200 to an undisclosed number of customers if they voluntarily close zero-balance equity lines. The parts of the country being targeted also has not been disclosed.

National City this year has been hit particularly hard by high-risk mortgage loans and has had to arrange a $7 billion capital infusion from institutional investors.

National City shares traded down 2 cents to $4.77 in early trading on Friday.


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