Update: Wells Fargo Will NOT Shut Down Personal Credit Lines
Wells Fargo has walked back its sudden decision to discontinue personal lines of credit. The reversal comes after outcry from customers who have relied on these lines of credit for years. In recent days, the lender has informed customers who have been using their personal credit lines that they can continue doing so.
“Based on feedback from our customers (thank you if you provided feedback!) we are adjusting our approach,” John Rasmussen, executive vice president at Wells Fargo, wrote in the email sent out to active customers “The terms of your account are not changing.” The news was reported by Bloomberg.
Wells Fargo Discontinues Personal Lines of Credits
Original article (Jul 8, 2021) – Wells Fargo has decided to stop offering personal credit lines. It is also informing customers that the existing lines will be shut down in the coming weeks.
The six-page letter that was sent to customers was first obtained by CNBC. Wells Fargo says that it had “recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts.” It will instead focus on credit cards and personal loans. Wells Fargo is indeed making a big investment on a revamped credit card portfolio.
The revolving credit lines from Wells Fargo are quite popular. The bank normally allowed customers to borrow anywhere from $3,000 to $100,000, enabling them to consolidate higher-interest debt, CNBC reports.
Wells Fargo told costumers in the letters that the account closures “may have an impact on your credit score,” and that they could not be reviewed or reversed. The bank said customers will be given a notice 60 days before their account is shut down, with remaining balances requiring minimum payments at a fixed rate.
7 thoughts on “Wells Fargo Reverses Decision on Closing Personal Lines of Credits”
I understand that they might choose to no longer offer it. But how can they just end it for existing customers. Isn’t there some kind of contract in the terms?
I have a line of credit and I haven’t received notice at all. Should I contact Wells Fargo and ask about this? What happens to my balance if they close my line?
If you have a remaining balances, it will have minimum payments required at a fixed rate. But as Jeff noted in comments call and close that account yourself.
I have had a line of credit for just over a decade. I received my notice about three weeks ago. What made my blood boil was language saying the info supplied to the credit bureau report would indicate “”Closed by bank” which historically has been a black mark. I just called and closed that account myself which should have WF report “closed by consumer” if history holds.
Can you send over the notice if you still have it?
It show too much personal info to pass around to you and DoC. or he would have it already. Mine was deliverd by snail mail.
Oh ok, no problem. Thanks for the additional info!