Wells Fargo & Co. WFC -1,96% stops personal credit lines and is due in the next weeks to shut off existing credit lines, CNBC has quoted client letters. Originally produced by the Bank as a method of either consolidating higher interest card debt and avoiding overdrafts on checking accounts (which offer clients between $2000 and $100,000 in revolving credit lines).
The bank stated in a six-page CNBC statement, “Wells Fargo has just evaluated its product offers and has decided to stop the provision of credit lines for new staff and portfolios and to liquidate all existing accounts.”
Credit cards and individual credit will be the focus of the bank. The action that follows the Federal Reserve to prevent the bank from increasing its budget until compliance issues are addressed has announced that a number of customers are arriving at this move with minimal notice, CNBC stated. One client quoted that he had been changing banks for more than 10 years after banking with Wells. Thursday’s wells shares decreased by 1.6%, but to date gained 41.6%, while the S&P 500 SPX, by -0.79%, increased by 15%.