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Wells Fargo will no longer offer personal lines of credit to customers and will close existing ones in the coming weeks, according to a CNBC report.
Revolving credit lines had been a popular product for consumer lending, typically giving users $ 3,000 to $ 100,000 in revolving credit lines and were set as a way for customers to consolidate credit card debt with higher interest rates or avoid overdraft when checking accounts.
“Wells Fargo recently reviewed its product offerings and decided to stop offering new personal and portfolio credits and close all existing accounts,” the bank said in a six-page letter to customers obtained by CNBC.
The move would instead allow the bank to focus on credit cards and personal loans, the letter said.
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Customers have been given a 60-day notice before their accounts close, with outstanding balances requiring regular minimum payments at a fixed interest rate, according to CNBC.
Wells Fargo also warned customers that account closures “could have an impact on your credit score,” CNBC reported.
The move comes after the Federal Reserve prevented the bank from expanding its balance sheet until it was able to fix compliance issues stemming from the bank’s fake account scandal. Last year, the bank announced it would no longer offer equity credit and later said it would stop providing auto loans to most independent car dealers.