Sen. Elizabeth Warren slams Wells Fargo for causing potential credit score hit to its customers

Business

CNBC 09 July, 2021 - 12:17pm 22 views

Why is Wells Fargo closing accounts?

Wells Fargo closing all personal lines of credit, which may affect customer credit scores. ... The bank said it is discontinuing the product so it can focus on personal loans and credit cards, and warned in its letter that the closure of the accounts "may have an impact on your credit score." The Week MagazineWells Fargo closing all personal lines of credit, which may affect customer credit scores

Typically, customers with personal lines of credit can borrow between $3,000 and $100,000, with variable interest rates ranging from 9.5 to 21 percent. The product was marketed as a way for customers to pay for something big like a home renovation, or to consolidate high-interest credit card debt. The bank said it is discontinuing the product so it can focus on personal loans and credit cards, and warned in its letter that the closure of the accounts "may have an impact on your credit score."

This comes three years after the Federal Reserve prohibited Wells Fargo from growing its balance sheet until it fixed compliance issues stemming from its account fraud scandal, which saw millions of fake savings and checking accounts opened by the bank for clients without their consent. Sen. Elizabeth Warren (D-Mass.) blasted Wells Fargo on Thursday, tweeting that not a single customer "should see their credit score suffer because their bank is restructuring after years of scams and incompetence. Sending out a warning notice simply isn't good enough — Wells Fargo needs to make this right."

In a statement to CNBC, Wells Fargo said it realizes "change can be inconvenient, especially when customer credit may be impacted" and it is "committed to helping each customer find a credit solution that fits their needs." Clients will be told 60 days before their accounts are shut down, with their remaining balances paid off over regular minimum payments at a fixed rate.

Unvaccinated travellers shouldn't expect to come to Canada anytime soon, according to Prime Minister Justin Trudeau.

North Korean leader Kim Jong Un has apparently been shedding weight, and now we have an idea of just how much.

A senior Google executive, Urs Hölzle, is working remotely in New Zealand after opposing remote work for lower-level Google employees, CNET reports.

The photos, videos, and other "virulent screeds" forced those manning the hotline to beg for other duties, according to Michael Wolff's book.

A magnitude 5.9 quake shook the California-Nevada border Thursday, with people reporting feeling a jolt hundreds of miles away, according to the USGS.

“There is no one-size-fits-all approach that will work for every single community,” the health department said.

Christopher Murray, director of the IHME, which the White House leans on for COVID-19 data, says we shouldn't drop our masks yet, especially indoors.

A mother traveling with her kids was caught on video having a meltdown at Orlando International Airport.

This mom’s giant sandwich hack will save you a ton of time prepping for a day at the beach.

Both Disney fans and French citizens quickly criticized Disneyland Paris, saying people should be allowed to breastfeed their children openly.

"I'm so glad the filibuster is here to fix this oh wait," Rep. Alexandria Ocasio-Cortez tweeted Thursday along with a video of a flooded road in NYC.

The teenager would rather leave home than pay this.

Experts weigh in on how celebrity women are breaking the stigma about sex toys.

A bottomless pit of bowling balls?

According to an investigation released Thursday, Steve Ballmer reported $532 million more in income than James but paid just $34 million more in taxes.

Insider's reporter on the Carnival Vista says every inch of space is used in her room. There's also a paperless room-service menu due to COVID.

A delegation of the Taliban visited Moscow on Thursday to offer assurances that their quick gains on the ground in Afghanistan do not threaten Russia or its allies in Central Asia. The Russian Foreign Ministry said the Kremlin envoy for Afghanistan, Zamir Kabulov, met with the Taliban delegation to express concern about the escalation and tensions in northern Afghanistan.

Conor McGregor predictably acted out when he came face to face with Dustin Poirier after a raucous UFC 264 press conference.

Paul Verhoeven told Variety that his memory of how the scene came together was "radically different from Sharon's memory."

Read full article at CNBC

Wells Fargo to close all personal lines of credit, CNBC reports

KSL.com 09 July, 2021 - 11:08am

The product, which usually gave users $3,000 to $100,000 in revolving credit lines, was pitched as a way to consolidate higher-interest credit-card debt, pay for home renovations or avoid overdraft fees on linked checking accounts, the report said.

Customers have been given a 60-day notice that their accounts will be shuttered, according to the report.

Wells Fargo did not immediately respond to a Reuters request for comment.

The move comes more than a year after the bank suspended home equity loans, given the economic uncertainty fueled by the COVID-19 pandemic.

The fallout from the pandemic also prompted the bank to stop providing loans to a majority of its independent auto dealer customers last year.

Wells Fargo shuts down personal lines of credit

13abc Action News 09 July, 2021 - 06:19am

The bank notified customers who use its personal lines of credit no more money is available to them.

People who used that credit offering could borrow up to $100,000 for things like home repairs or to consolidate credit card debt.

In a notice to customers about the closure, Wells Fargo warned it could impact their credit scores.

That gained the attention of Sen. Elizabeth Warren, D-Mass., who slammed the decision on Twitter and called the bank incompetent.

Not a single @WellsFargo customer should see their credit score suffer just because their bank is restructuring after years of scams and incompetence. Sending out a warning notice simply isn’t good enough – Wells Fargo needs to make this right. https://t.co/wyuuY2WEk5

She was also a key figure when Wells Fargo admitted to opening millions of fake accounts and in 2017 publicly told the bank’s CEO he “should be fired.”

A Wells Fargo spokesman said customers who previously used its personal lines of credit should now use credit cards and personal loans instead.

Business Stories