Wells Fargo is ending a popular consumer lending product, saying Thursday that the company will shut down all existing personal lines of credit for customers.
"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," the company said in a letter, according to CNBC News.
The personal lines of credit allow customers to borrow $3,000 to $100,000 as a way to consolidate higher-interest credit card debt from actions such as paying for home renovations or avoiding overdraft fees on linked credit accounts.
Bank officials said they shut down the service because they "feel we can better meet the borrowing needs of our customers through credit card and personal loan products." The bank said, adding that the closure "may have an impact on your credit score."
The bank will shut down all existing personal lines of credit in the coming weeks and have already given customers 60 days of notice before their accounts will be shut down. Analysts have said the service has cost the bank billions of dollars in lost revenue.