topic Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit in Credit in the News

Update: Course reversed-Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

ntx — Wed, 18 Aug 2021 01:36:54 GMT

https://www.cnbc.com/2021/07/08/wells-fargo-is-shutting-down-all-personal-line-of-credit-accounts-.html

"With its latest move, Wells Fargo warned customers that the account closures “may have an impact on your credit score,” according to a Frequently Asked Questions segment of the letter."

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

gdale6 — Thu, 08 Jul 2021 15:40:56 GMT

This combined with the cancelation of most card offerings tells me the bank is in trouble.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

pizzadude — Thu, 08 Jul 2021 17:00:34 GMT

@gdale6 wrote:
This combined with the cancelation of most card offerings tells me the bank is in trouble.

That, and I think they're still dealing with the fallout from the Fed's restrictions on how they can operate, still trying to figure it out.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

SweetCreditObsession — Thu, 08 Jul 2021 17:58:48 GMT

This is certainly going to cause a PR backlash for them. Thank you for sharing.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

rgd51 — Thu, 08 Jul 2021 18:08:45 GMT

I was leaning toward not applying for their new 2% card due to the excessive number of scandals over the last several years and this just solidifies my feelings further. I wouldn't get a revolving loan like the ones mentioned in the article but it goes to show this bank can't avoid controversy and pissing off their customers.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

RickNATL — Thu, 08 Jul 2021 18:19:07 GMT

This hits hard, I've had a $30K LOC since 2016. I hate to hear this but glad it's not my only LOC.

I wonder how the closing of the acct will be remarked, i.e. "closed by lender:, etc...?

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

SouthJamaica — Thu, 08 Jul 2021 18:58:23 GMT

@ntx wrote:
https://www.cnbc.com/2021/07/08/wells-fargo-is-shutting-down-all-personal-line-of-credit-accounts-.html

"With its latest move, Wells Fargo warned customers that the account closures “may have an impact on your credit score,” according to a Frequently Asked Questions segment of the letter."

Wow. That is weird.

I can understand phasing out a product, and not offering it to new customers.

I can understand not allowing any new borrowing under the product.

But unilaterally changing the terms of existing accounts and simply closing them has got to be a breach of contract, and probably a violation of banking regulations and laws.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

rgd51 — Thu, 08 Jul 2021 19:15:50 GMT

@SouthJamaica wrote:
@ntx wrote:
https://www.cnbc.com/2021/07/08/wells-fargo-is-shutting-down-all-personal-line-of-credit-accounts-.html

"With its latest move, Wells Fargo warned customers that the account closures “may have an impact on your credit score,” according to a Frequently Asked Questions segment of the letter."

Wow. That is weird.

I can understand phasing out a product, and not offering it to new customers.

I can understand not allowing any new borrowing under the product.

But unilaterally changing the terms of existing accounts and simply closing them has got to be a breach of contract, and probably a violation of banking regulations and laws.

As we have seen over the last several years WF has made it quite clear with their actions that they don't respect banking regulations and laws so none of this is surprising!

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

ntx — Thu, 08 Jul 2021 20:07:34 GMT

This combined with the cancelation of most card offerings tells me the bank is in trouble.

Now that you mention it, they probably make quite a bit of money from interest and fees from these lines of credit. It does make me wonder what outweighs that revenue enough to walk away from it now and in the future.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

Mr_Mojo_Risin — Thu, 08 Jul 2021 20:45:34 GMT

@SweetCreditObsession wrote:
This is certainly going to cause a PR backlash for them. Thank you for sharing.

I found out about this when I was on Twitter earlier. They're definitely getting some of that backlash over there.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

rgd51 — Thu, 08 Jul 2021 21:09:03 GMT

You would think after all the numerous scandals over the last several years that they wouldn't want to piss people off even further. Are they trying to put themselves out of business?

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

Horseshoez — Thu, 08 Jul 2021 21:21:43 GMT

@gdale6 wrote:
This combined with the cancelation of most card offerings tells me the bank is in trouble.

I don't know if I'd go so far as to say Wells Fargo is in trouble; I was being heavily recruited by them for a Director level position, that is, until April when I accepted another, and arguably better, job with a consulting firm. While I was interviewing I asked lots of questions regarding the scandle and the relative health of the bank and was satisfied they are in a good financial position, maybe not as good as say, Chase, but I wasn't worried about losing my job anytime soon had I gone to work for them.

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

pizzadude — Thu, 08 Jul 2021 21:25:26 GMT

@rgd51 wrote:
You would think after all the numerous scandals over the last several years that they wouldn't want to piss people off even further. Are they trying to put themselves out of business?

My guess is they're pulling back in the these areas to allow for expansion into other lines of business, given they're capped by the feds in terms of growth.

Agree that they could handle it better, you'd think they would have learned a few things about PR and messaging over the past years......

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

rgd51 — Thu, 08 Jul 2021 21:43:52 GMT

@pizzadude wrote:
@rgd51 wrote:
You would think after all the numerous scandals over the last several years that they wouldn't want to piss people off even further. Are they trying to put themselves out of business?
My guess is they're pulling back in the these areas to allow for expansion into other lines of business, given they're capped by the feds in terms of growth.

Agree that they could handle it better, you'd think they would have learned a few things about PR and messaging over the past years......

My bank accounts have always been with chase so I've never had a Wells Fargo account and all the bad things they've done certainly hasn't inspired me to open a credit card or bank account with them. They have no one to blame but themselves for the mess they're in.

Wells Fargo PLOC

Harvey26 — Thu, 08 Jul 2021 22:56:08 GMT

Seems like per this article they have decided to close all personal lines of credit. Same move BOA did couple years back with their personal lines of credit seems like more and more banks are moving away from personal lines of credit. Hopefully no one experiences any horrible credit score drops.

https://www.cnbc.com/2021/07/08/wells-fargo-is-shutting-down-all-personal-line-of-credit-accounts-.html

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

Horseshoez — Thu, 08 Jul 2021 23:42:42 GMT

@rgd51 wrote:
@pizzadude wrote:
@rgd51 wrote:
You would think after all the numerous scandals over the last several years that they wouldn't want to piss people off even further. Are they trying to put themselves out of business?
My guess is they're pulling back in the these areas to allow for expansion into other lines of business, given they're capped by the feds in terms of growth.

Agree that they could handle it better, you'd think they would have learned a few things about PR and messaging over the past years......
My bank accounts have always been with chase so I've never had a Wells Fargo account and all the bad things they've done certainly hasn't inspired me to open a credit card or bank account with them. They have no one to blame but themselves for the mess they're in.

While I agree with you on the surface, while I was interviewing I was impressesd at their house cleaning efforts (as it was explained to me, the entire upper echelon of their management, along with virtually anybody who could spell "scandal" was summarily fired) and their plans on becoming squeaky clean so as to rebuild public trust. If I move to an area where they have branches and TDBank (my current bank) does not, I wouldn't hesitate to open accounts with them.

Re: Wells Fargo PLOC

sparklerd34 — Thu, 08 Jul 2021 23:57:10 GMT

Wow

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

CreditCrusader — Fri, 09 Jul 2021 01:06:11 GMT

@Horseshoez wrote:
@gdale6 wrote:
This combined with the cancelation of most card offerings tells me the bank is in trouble.
I don't know if I'd go so far as to say Wells Fargo is in trouble; I was being heavily recruited by them for a Director level position, that is, until April when I accepted another, and arguably better, job with a consulting firm. While I was interviewing I asked lots of questions regarding the scandle and the relative health of the bank and was satisfied they are in a good financial position, maybe not as good as say, Chase, but I wasn't worried about losing my job anytime soon had I gone to work for them.

I would.

In fact, I will. They're in HUGE trouble. The long run fallout from doing customers this way will turn off current and future customers...bank it (no pun intended).

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

Horseshoez — Fri, 09 Jul 2021 01:16:02 GMT

@CreditCrusader wrote:
@Horseshoez wrote:
@gdale6 wrote:
This combined with the cancelation of most card offerings tells me the bank is in trouble.
I don't know if I'd go so far as to say Wells Fargo is in trouble; I was being heavily recruited by them for a Director level position, that is, until April when I accepted another, and arguably better, job with a consulting firm. While I was interviewing I asked lots of questions regarding the scandle and the relative health of the bank and was satisfied they are in a good financial position, maybe not as good as say, Chase, but I wasn't worried about losing my job anytime soon had I gone to work for them.
I would.

In fact, I will. They're in HUGE trouble. The long run fallout from doing customers this way will turn off current and future customers...bank it (no pun intended).

You're going to have to explain that; what constitutes "HUGE trouble"?

Re: Wells Fargo Tells Customers It’s Shuttering All Personal Lines Of Credit

rgd51 — Fri, 09 Jul 2021 01:24:36 GMT

@CreditCrusader wrote:
@Horseshoez wrote:
@gdale6 wrote:
This combined with the cancelation of most card offerings tells me the bank is in trouble.
I don't know if I'd go so far as to say Wells Fargo is in trouble; I was being heavily recruited by them for a Director level position, that is, until April when I accepted another, and arguably better, job with a consulting firm. While I was interviewing I asked lots of questions regarding the scandle and the relative health of the bank and was satisfied they are in a good financial position, maybe not as good as say, Chase, but I wasn't worried about losing my job anytime soon had I gone to work for them.
I would.

In fact, I will. They're in HUGE trouble. The long run fallout from doing customers this way will turn off current and future customers...bank it (no pun intended).

Agreed. They don't have a good reputation these days and they continue to make decisions that piss people off. The discontinuing of the Propel card as well as the subject of this post definitely doesn't make me confident that if I get one of their cards they won't cancel it.