Wells Fargo to end all personal lines of credit: It could affect credit scores`
According to a CNBC report, Wells Fargo will no longer extend personal lines of credit to consumers and will close down existing ones in the coming weeks.
Spinning lines of faith were a popular consumer lending product that provided users with revolving credit lines ranging from $3,000 to $100,000. They were marketed as a method for consumers to combine higher-interest debt or avoid overdraft penalties on checking accounts.
In a six-page statement to clients acquired by CNBC, Wells Fargo wrote, “We recently reviewed our product offerings and decided to suspend providing new Personal and Portfolio line of credit accounts and cancel all current accounts.”
According to CNBC, customers have been given 60 days’ notice before their accounts are closed, with any excess amounts requires regular minimum payments at a fixed rate.
According to the letter, the decision will allow the bank to focus on credit cards and personal loans.
The move comes after Federal Reserve prohibited the bank from expanding its balance sheet until it resolved compliance issues related to its bogus accounts crisis.