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

MyATLFico
New Contributor

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

In Wells Fargo defense, I've had a pretty good customer service experience with them for both my credit card and personal checking accounts. Chase isn't bad either, although their 5/24 rule sucks

 

It's BoA that's an irredeemable dumpster fire.



As of 8/31/20




Message 31 of 75
NRB525
Super Contributor

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

I had a WF checking account for years. Moved to other banks for that a few years ago, closed it not too long after. 

Got a second mortgage, which helped me buy with virtually no money down at the top of the market in 2007. Finally reached the point of selling the house for a profit early this year, and paid off the second in full. That completed my accounts activity. 

With the series of issues WF has had over the recent years, and so many other banks available, this seals the deal for no further interaction with WF for me. Moving on. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 32 of 75
USMC_Winger
Regular 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


In addition to focusing on credit cards and personal loans (the accounts with the highest bank earnings), I think Wells Fargo is avoiding the coming quagmire when the CDC's eviction moratorium expires July 31st, unemployment programs created by the CARES Act expire Sept. 6th, and the student loan payment moratorium expires Sept. 30th.  Customers will have to make monthly rent, mortgage, and student loan payments using current income and savings, not PLOCs.

 

Without PLOCs to fall back on, a significant number of customers will either take out high interest personal loans or default.  WF gains with the former and can avoid nearly all of the latter.  The exception is mortgage customers, but the housing supply is so low that most homes with mortgages in trouble can be sold on the market before the bank forecloses.

FICOs:





Message 33 of 75
FalconSteve
Established Contributor

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

Can't they sell PLoC like they do credit cards?

SoFi World Elite MC (TBOM) $7000 SL
REDcard (TD Bank) $2500 SL
AmEx Cash Magnet $10k SL, CLI after 36hr to $20k- $30k CL
BB&T Rewards $11k SL- impulse application
BB&T Rewards $11k SL- AU, not on reports- impulse app (wife's card)
Discover $8800 CL- $1k SL- AU, no longer on reports b/c of error (wife's card)
Citi Double Cash WEMC $8400 CL- AU- (wife's card)
AmEx Cash Magnet $27,900 CL (wife's card)
BoA Cash Rewards $11k CL- AU (Dad's card)
BoA Premium Rewards $12.3k CL- AU (Dad's card)
PSECU Founder's Card $30k SL- AU (Dad's card; closed on some reports)
AmEx Cash Magnet $30k CL- AU (Dad's card)
Wells Fargo Propel AmEx $3200 CL (AU, wife's card, not on CR b/c I was temporarily removed as an AU)

Credit Scores for both of us around 800, depending on what you pull & balances. All PIF, frequently before statement close
Goals: Buy a house, AOD VISA Signature card (or other 3% cashback), Chase Freedom Flex, $250k on CR, $100k NOT including AU accounts
Closed accounts (long period of inactivity): AmEx clear, Citi ThankYou (previously Driver's Edge), Chase Freedom, Cap One, Discover IT, Lowes, 1st REDcard, Buy.com Visa, Children's Place, Kohl's, Angel Card (AU- wife's), Old Navy, Wells Fargo Active Cash (2%)- $2k SL- AU (wife's card)
Message 34 of 75
RickNATL
Established Contributor

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

Got my letter...Screenshot_20210713-193941_Messages.jpg

 

Message 35 of 75
pizzadude
Moderator Emeritus

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


@RickNATL wrote:

Got my letter...

 


Ugggghh, sorry to hear  - hopefully WF closing this PLOC won't significantly impact your revolving utilization

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 36 of 75
RickNATL
Established Contributor

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

@pizzadude it won't, and if so, not significantly.  It's one of five PLOCs I have.  I am disappointed and think I am going to transition accounts from WF and leave the CC in place. 

Message 37 of 75
pizzadude
Moderator Emeritus

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


@RickNATL wrote:

@pizzadude it won't, and if so, not significantly.  It's one of five PLOCs I have.  I am disappointed and think I am going to transition accounts from WF and leave the CC in place. 


Glad to hear you'll be ok - will be interesting to see how much AA from customers they'll encounter as a result of this....

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 38 of 75
dustin31g
Frequent Contributor

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

I am surprised that they did not do this quicker. Over 3.9 million people are on forebarence or not paying rent that is due. All these programs end in a few months. Wells Fargo is smart and they know people are going to use personal lines of credit to pay there rent/mortgage and then default on the personal lines of credit. 

Smart move on there end. 

Message 39 of 75
Taurus22
Valued Contributor

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

Well if anyone remembers, years ago Wells Fargo use to be Wachovia, which collapsed due to pay-option mortgages when the housing market fell out. Wachovia was one of the largest banks in the country (an RJ Reynolds endeavor) and Wells Fargo bought it out. (They won out over Citibank)

 

"While Wells Fargo rescued Wachovia from potential collapse in 2008, it is now facing its own problems, including 2016 revelations of employees opening unauthorized accounts in customers' names to meet sales goals."

 

Then in 2018, Wells was fined for continued sketchy mortgage and insurance practices...

 

https://www.charlotteobserver.com/news/business/banking/article209375924.html

 

This year in Feb, this happened....

 

https://www.cnbc.com/2021/02/23/wells-fargo-sells-asset-management-arm-to-private-equity-firms-for-2...

 

So, this is just a continuation of a pattern that is ultimately going to bring Wells to its knees....it isn't looking good for them.

Current Wallet
Sock Drawered

On Deck:
Message 40 of 75
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