The bank in April 2020 temporarily stopped accepting new applications for home equity lines of credit. Wells Fargo has halted other lines of credit over the past year or so. “The terms of your account are not changing.” “Based on feedback from our customers (thank you if you provided feedback!) we are adjusting our approach,” John Rasmussen, executive vice president and head of personal lending at the bank, told active customers in an email, according to Bloomberg. The bank began notifying PLOC customers Tuesday of its reversal. "Sending out a warning notice simply isn’t good enough - Wells Fargo needs to make this right." "Not a single customer should see their credit score suffer just because their bank is restructuring after years of scams and incompetence," she wrote July 8. Elizabeth Warren, D-MA, tweeted last month that the heads-up was insufficient. "We realize change can be inconvenient, especially when customer credit may be impacted,” the bank wrote to customers last month in a six-page letter giving borrowers 60 days’ notice ahead of account closures. But its announcement last month that it would shutter existing PLOCs generated an outcry from customers and lawmakers alike - in part because reducing a customer’s available financing can hurt their credit score. Wells Fargo stopped opening personal lines of credit in May 2020 as part of a strategic review of its businesses, the bank said. But in recent years, other offerings - such as credit cards, personal and home equity loans, financing options for large retail purchases, and online lending from nonbank competitors - have proliferated. Historically, unsecured personal lines of credit (PLOCs) had been an option for borrowers with strong track records.
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