Wells Fargo (NYSE:WFC) stock is in the news today following the revelation that the bank is closing down all personal lines of credit and doing away with the service.
News of WFC closing down personal lines of credit came out yesterday and the company’s stock was down 2.5% when trading ended. Customers were alerted to the change via a letter telling them the change would happen in 60 days.
The Wells Fargo customer letter says the following about why the personal lines of credit are closing, according to CNBC.
“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.”
So what can customers expect from Wells Fargo now that its closing personal lines of credit? The company intends to set all of those accounts to fixed rates and require minimum payments on them.
Another thing worth noting is that the closing of the personal lines of credit could be bad for customers. The bank warns in its letter that this change could affect customers’ credit scores.
It’s worth noting that the change from Wells Fargo will have it focusing more on personal loans and credit cards. In addition to that, some are wondering if the change isn’t connected to the restrictions placed on the company following the revelation that it was opening fake bank accounts.
WFC stock was up 1.9% in pre-market trading on Friday morning.
Investors looking for more stock market news this morning will want to keep scrolling.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.