Well, things have changed. Just as its customers need new accounts with the bank—specifically loans, which are again on the rise in all their many forms, much to the relief of most banks, which rather desperately need to make them—Wells has taken a different tack. Instead of giving customers accounts they don’t need or want, it’s taking away those they do.
The bank is shutting down all existing personal lines of credit in coming weeks and no longer offers the product…. Last year, the lender told staff it was halting all new home equity lines of credit, CNBC reported. Months later, the bank also withdrew from a segment of the auto lending business….
Wells Fargo didn’t directly answer questions as to what role, if any, the Fed asset cap played in its latest move./The bank gave this statement: “In an effort to simplify our product offerings, we’ve made the decision 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….”
"It’s a bit upsetting,” Tomassi said in a phone interview. “They’re a big bank, and I’m a small person, and it feels like they’re making decisions for their bottom line and not for customers. A lot of people are in my position, they need a cushion every once in a while from a line of credit.”
Still, guys, it’s not like they’re going to resort to Mafia tactics to get their money back (those are allegedly reserved for employees).
Customers have been given a 60-day notice that their accounts will be shuttered, and remaining balances will require regular minimum payments at a fixed rate, according to the statement.
Wells Fargo tells customers it’s shuttering all personal lines of credit [CNBC]
Borrowing Is Back as Sign-Ups for Auto Loans, Credit Cards Hit Records [WSJ]
Wells Fargo Acted Like a ‘Mafia’ to Suppress Internal Critics, Former Executive Said [WSJ]