Thursday, July 8, 2021

Is Wells Fargo Shuttering Its Credit Line a Harbinger of Things to Come?

I feel sorry for anyone who has an account with Wells Fargo because of its decision to shutter all personal lines of credit thereby damaging a lot of credit scores through no fault of the borrower. 

Yet what scares me is if other financial institutions follow suit. If that happens then it could make the 2008 financial crash look like a Sunday school picnic. We'd be making our way out of the pandemic only for another crisis to hit us between the eyes. 

I can only hope this is a result of Wells Fargo being a really shady financial institution. After all, this was the same entity which less than five years ago paid billions in fines for creating fake bank accounts without the knowledge of its account holders. Still, that is cold comfort to Wells Fargo customers especially those who were convinced to stick with the company and now they've been burned yet again.

Yet I cannot help but wonder if customers of other financial institutions will find ourselves in the same sinking boat. And if we do then what will the Biden Administration and Congress do about it? I hope it's a question they don't have to answer.


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