Wells Fargo to end all personal lines of credit: It could affect credit scores – USA TODAY

https://www.usatoday.com/story/money/2021/07/08/report-wells-fargo-end-all-personal-lines-credit/7908836002/


0

Wells Fargo will no longer offer personal lines of credit to customers and will shut down existing ones in the coming weeks, according to a CNBC report

Revolving lines of credit had been a popular consumer lending product, which typically gave users $3,000 to $100,000 in revolving credit lines and was pitched as a way for customers to consolidate higher-interest credit card debt or avoid overdraft fees on checking accounts.

“Wells Fargo recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts,” the bank said in a six-page letter to customers obtained by CNBC.

The move would instead allow the bank to focus on credit cards and personal loans, the letter said. 

Stock market update:Major indexes pull back from records as bond yields sink again

Congress considers credit-reporting overhaul: This would include putting government in charge of scores

Customers have been given a 60-day notice before their accounts are shut down, with remaining balances requiring regular minimum payments at a fixed rate, according to CNBC.

Wells Fargo also warned customers that the account closures “may have an impact on your credit score,” CNBC reported.

The move comes after the Federal Reserve barred the bank from growing its balance sheet until it fixed compliance issues that stem from the bank’s fake accounts scandal. Last year, the bank announced it would no longer offer home equity lines of credit and later said it would stop making auto loans to most independent car dealerships.


Like it? Share with your friends!

0

0 Comments

Your email address will not be published. Required fields are marked *

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format