(Reuters) – Wells Fargo & Co is shutting down all existing personal lines of credit and is not offering the consumer lending product anymore, CNBC reported on Thursday, citing letters from the bank.
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 https://cnb.cx/3hm2yaB 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.
(Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)
