Wells Fargo & Co. said it’s shutting down all existing personal lines of credit and will no longer offer the product to its customers.
“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,” the bank said in an emailed statement. “We realize change can be inconvenient, especially when customer credit may be impacted.”
The portfolio is part of Wells Fargo’s broader personal lending book, which was $5 billion at the end of March. The breakdown of personal loans versus lines of credit within that portfolio couldn’t be learned immediately.
The bank said it’s been providing existing customers with 60-day notices their accounts will be closed, with a fixed rate and minimum payment for their remaining balances.
Under Chief Executive Charlie Scharf, Wells Fargo has been exiting businesses deemed inessential with the goal of simplifying operations and improving profitability following years of scandals. Earlier this year, the bank agreed to sell its asset management and corporate trust units, and last year it agreed to divest a $10 billion private student-loan book.
Last year, Wells Fargo said it would temporarily stop accepting applications for home equity lines of credit, following a similar move by rival JPMorgan Chase & Co. That move was part of the lender’s navigation of the economic impact of Covid-19, a company spokesman said at the time.
The bank, which issues loans for new and used car purchases, also told hundreds of independent auto dealerships that it was dropping them as customers, CNBC reported at the time.
The decision on lines of credit was reported earlier Thursday by CNBC.
A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.
Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.
Some in the industry say that more UBS financial advisors this year will be heading for the exits.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
