Wells Fargo will no longer be offering personal lines of credit and shutting down existing lines of credit according to a letter seen by CNBC. This product gives individuals a line of credit ranging from $3,000 to $100,000 and a fixed interest rate of 9-21%. The letter claims that these account closures may have an impact on users credit scores. This could be for a number of reasons (loss of an installment loan, credit utilization etc). It would be surprising if this account closure was listed as ‘closed by issuer’ as that’s not typically how these types of shut downs are treated. The decision to close down personal lines of credit is likely to do with the fed asset cap that was introduced. Customers have been given 60 days notice regarding this change.
Hat tip to reader Andrew D