Wells Fargo is reversing an unpopular decision to shutter personal lines of credit for its customers.
Last month, CNBC reported that the bank had informed its customers that the revolving credit lines would be closed after a product review.
The decision drew criticism from consumers who lean on the product as well as Sen. Elizabeth Warren, a frequent critic of the banking industry.
Now, the bank has decided to keep the products available for those who actively used them or want to reactivate old ones, according to a spokeswoman for the San Francisco-based company. It will not offer the credit lines to new customers, however.
Here is the statement:
As part of our strategic review of businesses last year, we determined that our suite of other consumer products serve our customers better than personal lines of credit. As a result, we ceased opening these lines in May 2020, and recently notified customers that we planned to close existing lines. We heard feedback from our customers and that feedback is very important to us; we are responding by ensuring customers can keep these lines of credit open.
For customers who have been using their lines, we are informing them that their lines remain open and they can continue to use them. For customers whose accounts have been inactive for the past 12 months, if they would like to keep their lines open, they can call us or simply use their line. For those inactive customers who do not activate their lines in one of these ways, accounts will be closed on December 2, 2021.
Beginning August 17, we have been communicating with all customers who received the earlier letters to inform them of this change, using both email and written letters.
This story is developing. Please check back for updates.
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