Wells Fargo announced recently that they are shutting down all existing personal lines of credit within their company. The well-known bank is now no longer offering the product and shutting down those personal lines within the next few weeks. This has angered some customers as this method was a popular consumer lending product for customers within the company.
If you’re not a part of Wells Fargo banking and don’t understand the product, here’s the full explanation. The credit lines revolved around letting customers borrow $3,000 to $10,000 for a certain account. This meant that it could be used to consolidate high credit card debt, pay for renovations, and avoid overdraft fees on checking accounts that are linked.
“Wells Fargo recently reviewed its product offering and decided to discontinue offering new personal and portfolio line of credit accounts and close all current accounts”Wells Fargo
This move has affected its customers within the past and current year. With the current shutdown, they have also halted new home equity lines of credit and withdrew from a segment for an auto lending business. Wells Fargo has also now mentioned that the account closures “may have an impact on your credit score” can no longer be reviewed or reverse. So will the personal lines of credit come back? Turns out the shutdown is final as they are moving on to bigger things.
What do you think of Wells Fargo ending all personal lines of credit? Let us know in the comments below.
This article originally posted on GREY Journal.