Wells Fargo is In More Hot Water

Wells Fargo announced that they are closing all personal lines of credit

On Thursday June 8th it was reported that Wells Fargo will close their personal lines of credit and will no longer offer this product to customers. Current customers were given a 60-day notice via mailed that their accounts are closing, and the account closers are final and there is a possibility of the closers impacting customers consumer credit scores. This personal line of credit was used by consumers to offset overdraft checking fees, pay off high interest debt and more.

According to CNBC Wells Fargo is still under fire for their fake account scandal that was discovered in 2017. From 2002-2017 there were 3.5 million unauthorized accounts were opened causing customers to occur banking and other fees. The victims filed a class action lawsuit which the bank was forced to pay $142 million in 2018. The unauthorized acts were blamed on the high-pressure sales that the employees faced during that time.

Since then the bank according to CNBC had to make “difficult decisions” opting to stop offering home equity lines of credit and scaling back on a segment of the auto lending business as well.

Senator Elizabeth Warren who played an intricate role in holding Wells Fargo accountable during 2017 the scandal tweeted the following

It remains unclear how many customers will be impacted by the closures but there a $24.9 billion dollars in loans that states “other consumer”.  As this loan also reported to the three credit bureaus there is a major concern that customers who are looking for home or auto loan or to refinance will lose that ability. A spokesman for Wells Fargo stated that are “committed to helping each customer find a credit solution that fits their needs.”

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