Wells Fargo tells customers it's shuttering all personal lines of credit

[lindysalsagal]

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

Wells Fargo tells customers it’s shuttering all personal lines of credit
PUBLISHED THU, JUL 8 202110:34 AM EDTUPDATED 2 HOURS AGO
Hugh Son @HUGH_SON

Wells Fargo is ending a popular consumer lending product, angering some of its customers, CNBC has learned.

The bank is shutting down all existing personal lines of credit in coming weeks and has stopped offering the product, according to customer letters reviewed by CNBC.

The revolving credit lines, which typically let users borrow $3,000 to $100,000, were pitched as a way to consolidate higher-interest credit card debt, pay for home renovations or avoid overdraft fees on linked checking accounts.

“Wells Fargo recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts,” the bank said in the six-page letter. The move would let the bank focus on credit cards and personal loans, it said.

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I hate this effing bank

I didn't mortgage with them, but my company sold my mortgage to them, and I had to deal with them. They'd let my payment check sit around on someone's desk until it was "late." Then snag me for $80. I had to pay in person at their teller to make sure I got a receipt. So glad I sold my house and divorced wells forgo. Bastids.

[PCIntern]

1. I was /am a victim of them as well.

“Bastids” is exactly correct.

[Demsrule86]

3. They decided I didn't have home insurance despite the proof I submitted and forced me to pay for

a shitty expensive policy. After much work on my part, they grudgingly removed it but never refunded my money. I refinanced mostly to get out of having to deal with them. I suggest Quicken Loans as they do not sell mortgages. They have never sold one of mine and are great to deal with. This is not spam nor am I endorsing any company...just my opinion.

[Maru Kitteh]

7. That's a lovely photo of the Obamas. What a love story they are.

[EYESORE 9001]

29. They tried the same shit with me, except it was an auto loan

They finally gave up on trying to get anything out of me, and I hope I gave a gaggle of executroids ulcers for their trouble. They have been Wells Fucko to me ever since.

[Demsrule86]

41. When I moved to Ohio Well Fargo refused to send me a title for my car...I was making payments

but had never been late or anything. They informed me I had to pay it in full for a title. Now I know that is bullshit as they show on the title if money is owed on a vehicle. I finally called the supervisor...name h Dick by for obvious reasons and informed him that they had their last payment from me and I had hidden the car where they would never find it...It was 08 and GM was in bankruptcy so hubs was laid off anyway. We could make our payments and all, but I wouldn't pay for a car, I couldn't drive. They sent it the next day.

[diane in sf]

38. Quicken just sold my loan to Freedom, but they're ok.

[Demsrule86]

40. They never sold mine... and I have had more than one loan with them.

Do you have a VA loan?

[mitch96]

20. WF truly sucks a big wad. They jerked me around on a time sensitive loan to the point that

they would not loan the amount needed..
WHY DID'NT THEY SAY THAT IN THE FIRST PLACE. I'm talking a few months. I went with an on line lender, 4 days... done and done.
Then they have the BALLS to send me a questionnaire asking how was my experience..HA..
They did not like what I said. They called a few times and then sent me a "packet" of info on why they did not approve my loan for the amount requested. I guess it justified my complaint in their eyes.. BASTIDS is right...... They got dinged b/c of unscrupulous practices signing up customers also so FUCK'EM...
Never again..
OK, rant mode off..
m

[lagomorph777]

2. An openly criminal organization.

Can't they be forced out of business, or their assets sold off to reputable ownership?

[lindysalsagal]

5. according to this article, they've been fined and punished:

In 2018, the Fed barred Wells Fargo from growing its balance sheet until it fixes compliance shortcomings revealed by the bank’s fake accounts scandal.

The asset cap has ultimately cost the bank billions of dollars in lost earnings, based on the balance sheet growth of rivals including JPMorgan Chase and Bank of America over the past three years, analysts have said.

[lagomorph777]

6. That's not enough. The entire organization is corrupt and must be shuttered.

[Mosby]

23. That's silly.

There are 100 thousand plus employees at WF, who are your friends and neighbors. WF is one one the largest money centers in the country, you don't just "shutter" a financial company like that, which is why Obama created the tarp fund in the first place, because they and a couple others hold most of the home loans in the entire country.

The board replaced all the people who were involved in the bad business deals, and they have done everything the regulators required.

[lagomorph777]

27. They're still doing bad things.

They need to go a few more layers down the management structure; replace the top 3/4 of the hierarchy.

That would probably mean a major buyout and name change; that would improve job security for the thousands of low-level workers.

[bamagal62]

30. We know someone on the new board

And they are a stand up, honest person. So, hopefully, the new board will help.

[Wednesdays]

32. In a nutshell,

"Too big to fail."

[Rocknation]

4. One more to add to their list of pratfalls

Last edited Sun Jul 11, 2021, 08:23 PM - Edit history (1)

During the (first) Gulf War years, Wells Fargo was allowed to break the law by foreclosing on homes owned by people on active duty.


Rocknation

[Scrivener7]

8. Wow. I had one of them when I redid my bathroom. Thank God it's paid off.

Calling in a loan like that will screw up almost everyone that has one. They're not borrowing the money because they have it sitting around to pay off a called loan.

[Buckeyeblue]

9. It must not be a profitable product

Big banks are about the bottom line. Stick with credit unions.

[Xoan]

10. +1

For Credit Unions.

[lindysalsagal]

37. Love, love, love my credit unions.

[FBaggins]

11. Many banks got rid of this product years ago

They really aren't that popular and benefit few customers.

They must have gotten to the point where just managing the product was more expensive than what the few users could support.

I doubt that there are many people who wouldn't be better off with a different product.

[Klaralven]

12. Banks have to reserve against unused credit in lines of credit

Banks need to hold reserves against unused credit in case economic conditions change and customers draw down the credit lines. So offering credit that customers aren't using is a money-loser for the bank.

I'm surprised that banks haven't trimmed more credit card credit limits or revoked credit cards that are seldom used. They also have that negative effect on profitability, although credit cards are a much more profitable line of business.

[uponit7771]

24. "revoked credit cards that are seldom used" this is what they should be doing with the LOCs also but

... it looks like they're cutting them all.

I agree, they need to be able to be stable but all of their LOCs seems like a hammer to fly scenario

[lunatica]

13. Reminds me of 2008 and beyond

The damn banks forced me to declare bankruptcy, which the court awarded me. But it was a good thing to lose all credit for years. I’m no longer in debt up to my gag reflex and I’m happy that way.

[bucolic_frolic]

14. At a time when banks have so much cash

and insufficient borrowers? Their economic forecasters must really see a landscape where people are unable to repay.

[Roland99]

15. Navy Federal credit union had suspended HELOCs and the like. It's to protect them I'm sure

with the massive amount of unemployment and underemployment, it would be negligence on the part of banks to keep credit lines flowing freely

[spooky3]

17. I checked with Penfed that I could use my HELOC for

Paying part of a major home addition. Yes, no problem. The terms were that as long as I made at least minimum payments, I had at least 10 years to pay it off. About a month after I used it, they wanted repayment in less than 3 years after which the line was closed. Why did they think I called them first to check?

Since I had exhausted other savings to deal with cost overruns, this was a huge deal. Fortunately I was able to pay it off. But then when they sent me a solicitation to open a new HELOC, and pay fees, I tossed it in the trash.

Bad customer service—would not recommend.

[AllaN01Bear]

16. i devorced them a long time ago.

i was working for a church and needed a auto deposit for payment .
was making 50 $ month. could use atm but couldnt write checks and had to have $1000.00 in the account in order to write checks . so i said , bye to them .i am with a semi local bank and they have been good to me over the years .their founder probably would turn in his grave .

[DallasNE]

18. This Is How People Put Food On The Table

I'm sure a substantial number of these accounts are now non-performing so this is a necessary business measure for banks to make. This is just another indication of the uncovered part of the news of people suffering with every single Republican voting to not extend a helping hand to those in severe need. Watch out when the rent moratorium expires at the end of July. Where str the investigative reporters when you need them. There will be ripple effects.

[FBaggins]

35. No it isn't

Very few people have lines like this these days.

As I said earlier. There isn't really any news here. Most banks got rid of these accounts years ago. The product is simply outdated and customers have better alternatives.

[DallasNE]

39. I Have One Of Those Accounts Today. N/T

[uponit7771]

19. So does that mean that balances are due when they shut the accounts? tia

[lastlib]

21. not necessarily, as I read it.

They're just not doing new business here.

They could conceivably call them in, but doesn't sound like they are--yet.

[MineralMan]

22. I doubt that very much.

I never had one of those accounts. If I had, I'd be checking the loan documents right now. But, I don't think they can call in those loans at this point. They're probably just not offering them in the future.

[OMGWTF]

25. Give a man a gun and he can rob a bank; give a man a bank and he can rob the world.

This is a criminal enterprise. It should be shut down and its officers sent to prison. IMHO.

[DFW]

26. I'm not a fan of theirs either

When our small Swiss office was forced to close its local bank account, due to the Swiss being too burdened with required paperwork from the USA, we asked a few American banks with branches in Switzerland. Wells Fargo said OK, but only if we left $1 million on permanent deposit with them. Right. Next!?

They also doubled the rates charged by their foreign exchange department. From one day to the next, and without prior warning. Just a „too bad!“

Not a good institution to do business with.

[Scalded Nun]

28. I do not understand how they manage to have a single customer

[LastLiberal in PalmSprings]

31. I got hit by this.

We got blindsided, like everyone else. The letter said: "Your options are (1) pay the balance by August 23, or (2) there are no other options." I'm fortunate that I can pay it off by the due date, but there have been times -- especially during the past year -- where I would not have been able to do it. This move is purely to increase WF's profits, by getting you to transfer to their credit card with its usurious interest rate.

I've been a customer for 37 years. I'm going to move my accounts to my credit union.

[FBaggins]

36. That isn't what has been reported

The rate will just be locked in after August and no further advances are possible.

Of course, the closed line will dent your credit score if it stays open... so it's likely a good idea to pay it off if you can.

[Bengus81]

33. I just got an offer of some kind a couple of days ago from WF

Don't know what it was, I just rip them up and trash them.

[Beringia]

34. I tried to open a checking account with them around 1980s

and they said I had to have a credit card to have a checking account with them, I assume to show I had enough disposable income, so they turned me away because I didn't have one. I thought wow, cross them off my list.