Bank analyst speaks out on Wells Fargo’s decision to suspend personal lines of credit – WSOC TV

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Wells Fargo & Co. will close personal lines of credit in the coming weeks, according to a CNBC report.

Wells Fargo said the move would allow it to focus on credit cards and personal loans, a separate product. Customers have been given 60 days notice and will receive multiple reminders. Decisions are final. The bank said the closings could affect customers’ credit scores, according to a letter cited in the CNBC report.

The San Francisco-based bank did not say how many borrowers would be affected. Revolving lines of credit, optionally charged for home improvement or debt consolidation, range from $ 3,000 to $ 100,000.

“As we simplify our product offerings, we made the decision last year to no longer offer personal lines of credit because we believe we can better meet the borrowing needs of our customers through credit cards and personal loan products. We realize that change can be awkward, especially when customer credit can be affected. We are committed to helping every customer find a credit solution that matches their needs, ”Wells Fargo said in a statement obtained by the Charlotte’s Business Journal.

Dick Bové, an analyst at Odeon Capital Group, said he believed the move was related to the asset cap. Wells Fargo said no. The Federal Reserve imposed this cap in 2018, following a fake account scandal where millions of accounts were created without the knowledge of customers in a toxic sales environment. Years later, the bank continues to suffer the backlash from regulators and customers. Problems have been discovered in several industries.

Read more here.

(Watch below: Wells Fargo Breaking All Personal Lines of Credit)


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