cancel
Showing results for 
Search instead for 
Did you mean: 

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

ntx
Regular Contributor

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

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

 

"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."  Smiley Sad

 

 

My only card: NFCU Cash Rewards Visa $20K 04/20 @10.99% - I'll deal with any adverse action when and if it comes.
I'm keeping things simple as I near retirement, and I can't be bothered with more cards.
EQ8 690 TU8 651 EX8 670 ( as of 08/18/21 )
EQ9 744 TU9 724 EX9 689 ( as of 08/18/21 )
BK7 03/14, 1 CO 05/16
Message 1 of 75
74 REPLIES 74
gdale6
Moderator

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

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

Message 2 of 75
pizzadude
Moderator Emeritus

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


@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.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 3 of 75
SweetCreditObsession
Valued Contributor

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

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



(+76) | (+92) | (+124) | TU Fico 9: 704 | Exp Fico 9: 737

Goal: Min. 740 w/all CRAs - Met
Next Goal: Amex BCE
Subsequent Goal(s): Min. 780 w/all CRAs
Gardening Until: ??/??/202?| Last App: 7/21/2021
Message 4 of 75
rgd51
Regular Contributor

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

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. 

Message 5 of 75
RickNATL
Established Contributor

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

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...?

Message 6 of 75
SouthJamaica
Super Contributor

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


@ntx wrote:

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

 

"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."  Smiley Sad

 

 


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.

 

 


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 7 of 75
rgd51
Regular Contributor

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


@SouthJamaica wrote:

@ntx wrote:

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

 

"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."  Smiley Sad

 

 


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!

Message 8 of 75
ntx
Regular Contributor

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

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. 

My only card: NFCU Cash Rewards Visa $20K 04/20 @10.99% - I'll deal with any adverse action when and if it comes.
I'm keeping things simple as I near retirement, and I can't be bothered with more cards.
EQ8 690 TU8 651 EX8 670 ( as of 08/18/21 )
EQ9 744 TU9 724 EX9 689 ( as of 08/18/21 )
BK7 03/14, 1 CO 05/16
Message 9 of 75
Mr_Mojo_Risin
Senior Contributor

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


@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.

NFCU More Rewards 28K CL
AODFCU Visa Signature 5K CL
Citi Custom Cash 6K
NFCU Cash Rewards 8K
Discover IT 2K
Cap 1 600
NFCU auto loan
Message 10 of 75
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.