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Wells Fargo Backtracks, Will Keep Existing Personal Credit Lines

Wells Fargo has gone back on a previous declaration that it would be doing away with its personal credit lines, Bloomberg reported.

The lender has, in the last few days, been informing customers using personal credit lines that the financing channels will still be available, according to Bloomberg. Those who haven’t used their accounts since October will also be able to keep them open.

The bank made the announcement last year that it wasn’t accepting new applications for personal credit lines, and it went almost unnoticed because many people have come to favor other methods of finance for rainy days or larger purchases, such as credit cards or personal loans, Bloomberg reported.

However, the bank’s move to completely shut down personal credit lines ended up drawing criticism and outrage, according to Bloomberg. That’s partially because cutting a customer’s available financing can hurt their credit score. So, Wells Fargo has decided to give inactive credit line customers until the end of November to either use their accounts or tell the lender they want to keep them open.

Personal lines of credit, once offered to borrowers with strong track records, became less relevant as those borrowers began to get other options like credit cards with competitive rewards programs or any number of online lending programs, Bloomberg reported.

In other Wells Fargo news, the bank has seen several shake-ups in its personnel as of late, including adding a new board chair in Steven D. Black, who has a 45-year track record working in finance.

Read more: Wells Fargo Selects New Board Chairman

At the same time, Wells Fargo also added Wayne M. Hewett as a new member and chair of the Governance and Nominating Committee.

In July, the bank added Derek Ellington as the leader of its small business banking unit.

Read more: Wells Fargo Taps Derek Ellington As SMB Banking Chief

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