NEW YORK, NY — (07-08-21) — Wells Fargo has begun informing customers it will no longer be offering personal credit lines, with all existing personal credit lines being shut down in the coming weeks.
In a six-page letter sent to customers and obtained by CNBC, Wells Fargo said it had “recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts.
Wells Fargo said that they will be focusing on credit cards and personal loans.
The revolving credit lines had been a popular consumer lending product, allowing customers to avoid overdraft fees, consolidate higher-interest credit card debt and on checking accounts.
The Wells Fargo personal credit lines allowed customers to borrow anywhere from $3,000 to $100,000.
In a FAQ portion of the letter, Wells Fargo explained said…“We apologize for the inconvenience this Line of Credit closure will cause,” the bank said, according to CNBC. “The account closure is final.”
In a statement sent to CNBC after its initial report went public, a Wells Fargo spokesman said, “We realize change can be inconvenient, especially when customer credit may be impacted,” adding that the bank was “committed to helping each customer find a credit solution that fits their needs.”
Wells Fargo says that customers will be given a 60 day notice before their account is shut down, with remaining balances requiring minimum payments at a fixed rate.
Article by: Paul Goldberg, Staff Writer
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