Wells Fargo scraps personal lines of credit
Wells Fargo shares have advanced 40% this year
Panel on Fed, banks
Wells Fargo will no longer be offering personal lines of credit to customers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WFC | WELLS FARGO & CO. | 74.34 | +1.54 | +2.12% |
DEFLATION NOT INFLATION IS A BIGGER PROBLEM
In a statement to FOX Business, the bank confirmed the move, first reported by CNBC.
"As we simplify our product offerings, we made the decision last year to no longer offer personal lines of credit as we feel we can better meet the borrowing needs of our customers through credit card and personal loan products. We realize change can be inconvenient, especially when customer credit may be impacted. We are providing a 60-day notice period with a series of reminders before closure, and are committed to helping each customer find a credit solution that fits their needs" according to a company spokesperson.
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The move impacts new customers and for existing customers with open lines, those will be closed. The bank is giving customers a 60-day notice period and is encouraging them to apply for other lending needs.
The move does not impact commercial accounts.
According to a letter viewed by CNBC the move "may have an impact on your credit score" the bank detailed.
Photographer: Kyle Grillot/Bloomberg via Getty Images
CEO Charles Scharf, who took over the scandal-laden bank in October of 2019, is working to right the ship and his efforts are impressing shareholders.
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The stock has gained over 40% this year.