Wells Fargo & Co.
WFC,
is discontinuing personal lines of credit and will shut down existing ones in the coming weeks, CNBC reported, citing customer letters it has reviewed. The product, which offers customers $3,000 to $100,000 in revolving credit lines, was originally pitched by the bank as a way to either consolidate higher-interest credit card debt or avoid overdraft fees on checking accounts. “Wells Fargo recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts,” the bank said in the six-page letter, according to CNBC. The bank will now focus on credit cards and personal loans. The move, which comes after the Federal Reserve banned the bank from growing its balance sheet until it has addressed compliance issues, has angered some customers, coming with little notice, said CNBC. It cited one customer as saying he would switch banks after banking with Wells for more than 10 years. Wells shares were down 1.6% Thursday, but have gained 41.6% in the year to date, while the S&P 500
SPX,
has gained 15%.
