Wells Fargo stops all lines of personel credit....

[gmh101358]

Ive been witth WFC for years.....my wife worked for them 21 years......I had a xxxxx line of credit for years that I could sign and walk .....
Last week I get a letter saying now i dont.......but still have 2 Visa cards etc....yada yada yada....
To me this a very bad sign.....if WFC is pulling credit from guys like me that have over a 750 credit score and have prefect credit is a sign of bad things to come.
Anybody else get this "letter"?

 

[MParr]

No bank is too big to fail.

 

[Ed_Flecko]

I know YOU do because your Wife worked there, but many people do NOT know that Wells Fargo (or Bank of America) is NOT FDIC insured.

Ed

 

[diyjake]

I know YOU do because your Wife worked there, but many people do NOT know that Wells Fargo (or Bank of America) is NOT FDIC insured.

Are you sure? Quick google says:
All types of deposits held at Wells Fargo Bank are covered by FDIC insurance including the following examples: Checking Accounts. NOW Accounts. ... Outstanding Cashier's Checks, Money Orders, Loan Disbursement Checks, Interest Checks and Drafts issued by Wells Fargo.

 

[JustN89]

This was announced earlier this month. The closure of these accounts will impact your credit score, which is unfortunate. It sucks to have your credit negatively impacted by a decision made by your bank to stop offering a product that you used.

 

[JeffKeryk]

It just means WF is not finding personal loans profitable enough.

 

[diyjake]

This was announced earlier this month. The closure of these accounts will impact your credit score, which is unfortunate. It sucks to have your credit negatively impacted by a decision made by your bank to stop offering a product that you used.

Yes this really sucks for their customers.

 

[JoelB]

It just means WF is not finding personal loans profitable enough.

Agreed. I'm not sure why the standard response is to assume the sky is falling. They've been hit hard from all the issues they've been involved in and need to streamline their offerings.

 

[Passport1]

I have had two mortgages with WF. Never again. They really screwed up my escrow twice. This spring tried to get a refi. Their process was so byzantine that I told the loan officer to pull my application after I had completed the requisite paper blizzard at least two times. BoA is hardly better. Their only satellite office in my little town has been basically closed for months. First they said it was because of covid then after that it was because of staffing issues. Bunk.

rant over

 

[JeffKeryk]

Their process was so byzantine

100% agree. I have wired money to people over the past few years. If I have substantial WF accounts, there should not be a stiff fee to do a lousy wire transfer.
I guess I am too lazy to find another banking service. My bad.

 

[BMWTurboDzl]

I know YOU do because your Wife worked there, but many people do NOT know that Wells Fargo (or Bank of America) is NOT FDIC insured.

Ed

Don't spread false information.

 

[zzyzzx]

https://www.cnbc.com/2021/07/08/wel...wn-all-personal-line-of-credit-accounts-.html

"Last year, the lender told staff it was halting all new home equity lines of credit, CNBC reported. Months later, the bank also withdrew from a segment of the auto lending business."

IMO getting out of the home equity line of credit business is probably a smart move. I'm still trying to find out exactly what segment of the auto lending business they are referring to.

 

[MNgopher]

I know YOU do because your Wife worked there, but many people do NOT know that Wells Fargo (or Bank of America) is NOT FDIC insured.

Ed

False. Wells Fargo is FDIC insured.

 

[Tdbo]

Yes this really sucks for their customers.

Given their history, to do business there, one must embrace the suck.
In other words, they are used to it.

 

[JoelB]

Given their history, to do business there, one must embrace the suck.
In other words, they are used to it.

Interesting how this mentality is so common. Have you banked with WF? In my 20 years with them I've never had a single issue. I could be the exception for sure. But if they are truly terrible it seems like I would have seen it at some point.

 

[MNgopher]

Wells Fargo has been in trouble for years. Remember the scandal of bank employees opening new accounts for existing customers without their permission to meet sales targets? Etc? As a result, they were penalized and have been force to operate under an asset cap that other banks have not.

As a result of this (and trying to stay in lines where they make more profit), they've dropped out of home equity lines of credit, auto lending in many cases, and now personal lines of credit.

In my case, they opened two additional accounts with no purpose other than to hit sales goals. I refinanced my mortgage with them once, and it was botched so badly that I vowed never to do so again. Over time, we've moved nearly everything to two credit unions and haven't looked back. Their reputation in the business world isn't the greatest these days either...

 

[PWMDMD]

Wells Fargo is a terrible bank. I've had my mortgage sold to them twice and it is always a cluster. They've also had their fair share of scandals between fake accounts and "misstated" incomes for mortgages. They've paid billions in fines.

 

[MNgopher]

Interesting how this mentality is so common. Have you banked with WF? In my 20 years with them I've never had a single issue. I could be the exception for sure. But if they are truly terrible it seems like I would have seen it at some point.

I've banked in some form with Norwest Bank back to 1993, and then into Wells Fargo. At one time, they were a good bank. Those days are long gone.

My credit union pays interest at rates 20+ times higher than WF. WF loan rates have consistently been about 0.5% higher than the local credit unions. To keep banking Free at WF required meeting something like 5 different requirements, while my credit union has no requirements other than maintain at least $5 in an account...

Can't understand why I left...

 

[Pablo]

Credit unions, Fidelity. That is all we need for personal money. I have one business account with BofA for clearing, but that's it. WF just has done so many plain odd things in the past, some not even profitable............yeah, no.

 

[PWMDMD]

I know YOU do because your Wife worked there, but many people do NOT know that Wells Fargo (or Bank of America) is NOT FDIC insured.

Ed

Seems the basic FDIC insurance is in place at BoA. This is from their website.

"As of January 1, 2010 Bank of America no longer participates in the FDIC's Transaction Account Guarantee program. Coverage under the FDIC's basic deposit insurance rules continues to apply. Funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000, per depositor, per insured bank, for each account ownership category under the FDIC's general deposits insurance rules."