Wells Fargo Tells Customers its Shutting Down Existing Personal Lines of Credit

In a move that may affect millions of customers, Wells Fargo has announced that they are shuttering all existing personal lines of credit in coming weeks.

The bank no longer offers the product according to customer letters reviewed by CNBC.

Wells Fargo’s personal line of credit, which typically gave users $3,000 to $100,000 in revolving credit lines, was a way to consolidate higher-interest credit card debt or pay for other things and avoid overdraft fees on linked checking accounts.

The bank has even admitted that the account closures “may have an impact on your credit score,” according to a FAQ segment of the letter.

“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 a six-page letter. The move would let the bank focus on credit cards and personal loans.

The company’s FAQ in the letter also noted that the account closures couldn’t be reviewed or reversed: “We apologize for the inconvenience this Line of Credit closure will cause,” the bank said. “The account closure is final.”

The bank also stated: “In an effort to simplify our product offerings, we’ve made the decision to no longer offer personal lines of credit as we feel we can better meet the borrowing needs of our customers through credit card and personal loan products.”

After publication of a CNBC article, a Wells Fargo spokesman commented: “We realize change can be inconvenient, especially when customer credit may be impacted,” the bank said, adding that it was “committed to helping each customer find a credit solution that fits their needs.”

Customers have been given a 60-day notice that their accounts will be closed, and remaining balances will require regular minimum payments at a fixed rate, according to the statement.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.