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Debt Consolidation Tampa – Wells Unexpectedly Shuts All Existing Personal Lines Of Credit, Hinting US Economy On The Edge

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As the credit market heats back up due to the growing consumer demand amid the reopening, America’s third-largest bank, Wells Fargo, unexpectedly announced this week that it will permanently shut down all of its existing lines of credit – a very popular product provided by the retail-focused Wall Street giant – and the move is already infuriating a legion of customers. The revolving credit lines that are about to be discontinued in the coming weeks typically allowed customers to borrow from $3K to $100k. When they were launched in the first place, the bank’s goal was to offer users a way to consolidate higher-interest credit-card debt, pay for home renovations or avoid overdraft fees on checking accounts attached to the loan. In a statement released on Thursday, the bank said the decision came as an effort to simplify their product offerings, so they chose to no longer offer personal lines of credit as the bank feels it can better meet the borrowing needs of their customers through credit card and personal loan products.
Another major disruption caused by the sudden shutdowns is that many customers will be left without what may be considered as a critical source of liquidity. Even though the bank didn’t reveal how many customers used the credit lines it is eliminating, recent data showed that Wells Fargo had had $24.9 billion in loans in a category called “other consumer” as of March, and that category was 26% lower this year than during the same period last year.
Many of the users of the credit lines that are shuttering will actually be the ones penalized by the bank’s decision. According to the CNBC report, it will get much harder for the customers whose credit lines will be involuntarily closed to receive credit from a new source because their FICO scores will be penalized as if they had elected to close the credit line willingly. Economists have been advising users to stop making withdrawals and turn their attention to repayment to avoid disruptions in their credit scores. According to one CNBC analyst, “once the account is closed and you can no longer draw from it, your annual percentage rate will be frozen and that’s the rate you’ll pay on the remaining balance”.
In essence, the move is Wells Fargo’s latest in a series of lending products closures. In 2020, the bank announced it would no longer provide home equity lines of credit for its customers and that it would stop giving auto loans to most independent car dealerships. Back then, financial analysts argued that happened because the bank was having a hard time making enough money to keep these areas going since the Federal Reserve placed penalties and growth limits on its business.
The last time Wells restricted consumer credit was because of the mounting uncertainty about the remaining purchasing power of the American consumer amid what was the worst economic recession facing the United States since the Great Depression of the 1930s. But that uncertainty pretty much vanished ever since trillions of dollars in federal stimulus money were pumped into the financial markets, and fueled several asset bubbles and an unprecedented boom in both stock and housing markets. That’s why the timing of this latest decision is sparking so much curiosity amongst financial experts.
It seems that the bank is engaging in some prudent risk-management as it could already realize that the U.S. economy is on the edge of an inflationary collapse that will likely force the Fed to hike interest rates much sooner than expected. As Wells Fargo tries to restructure its operations and takes cautionary measures to prevent future losses, the bank’s move says more about our overheating economy and a bleak outlook for the reopening than many can realize. Those who have previously seen warning signs indicating that a catastrophic financial crisis was approaching already know that they have to run for the exits before the whole system starts melting down while triggering huge losses and acute financial imbalances. One thing is certain: when big banks suddenly start to close down their credit lines is because they can see that trouble is ahead.

https://www.epiceconomist.com

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36 Comments
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36 Comments

  1. Universalis Solis
    July 31, 2021 at 1:46 am

    So they’re basically turning personal lines of credit into loans. Lmao

  2. 546 cowboy
    July 31, 2021 at 1:46 am

    There is a simple solution people.
    1. Pay no Federal Income Taxes
    2. do not obey any laws passed by this corrupt Congress
    3. do not obey any of illegitimate Biden executive orders

    If WE The People all do these three things they cannot arrest all and when they come for you or your neighbor they are met with armed citizens remember WE outnumber any force many times over.

    Wars are not won or lost with just soldiers that is what happens when supplies are cut. WE can control every highway, port and train line in America.

  3. Marianne Jane Ciminelli
    July 31, 2021 at 1:46 am

    tv robbery

  4. Marianne Jane Ciminelli
    July 31, 2021 at 1:46 am

    both

  5. Squirrel Attackspidy
    July 31, 2021 at 1:46 am

    Was this narrated by Thurston Howell the 3rd?

  6. Wick Field
    July 31, 2021 at 1:46 am

    Money is an issue that everyone has for a better and luxurious life, Life was hard for me until I started trading bitcoin and am now earning $20,000 per week

  7. James Byrne
    July 31, 2021 at 1:46 am

    What a daft voive over

  8. R H
    July 31, 2021 at 1:46 am

    We're prepping for a boom, and village idiots screaming impending economic collapse. There's a reason why there a "1% problem." it's actually a 90% problem because that's the percentage of idiots in the human population.

  9. Mike M
    July 31, 2021 at 1:46 am

    Sure loan me some money, you will never get it back!

  10. Greg Summerson
    July 31, 2021 at 1:46 am

    Time to file for bankruptcy

  11. Architect1088
    July 31, 2021 at 1:46 am

    Who the f is narrating this?

  12. apollo_1
    July 31, 2021 at 1:46 am

    WF screwed their loyal customers again. After the account scandals a few years ago. The loyal customers deserve what going now.

  13. Hammer Sandoval
    July 31, 2021 at 1:46 am

    Move over Washington Mutual has a new neighbor😂

  14. Rachel Fenicle
    July 31, 2021 at 1:46 am

    Oh go away

  15. No Buddie
    July 31, 2021 at 1:46 am

    No credit no way to buy Shiba Inu coin and make 1000% profit and more. It's about control debt is #1 controller. You invest your credit in Bitcoin and can pay it back and still see major profits. Simple Bitcoin is beating the crap out of banks. Hello!?

  16. Cabaret Z
    July 31, 2021 at 1:46 am

    The banks want to crash the market through housing bubble again or whatever else sticks, so their “bailout” can beat “student loan forgiveness” and “save Taiwan” to Biden’s desk. We’re gonna spend $1T on SOMETHING, and they want it again.

  17. Voicfulcornet5
    July 31, 2021 at 1:46 am

    What about Debit accounts? Anyone know

  18. T Ranger
    July 31, 2021 at 1:46 am

    Housing market is oversaturated and way overpriced and add to the fact that there in zero job stability in the USA. Lending is a huge risk.

  19. TK
    July 31, 2021 at 1:46 am

    Pull all ur money out of wells fargo

  20. muster seeds
    July 31, 2021 at 1:46 am

    when the bank of America goes out of business. They sold customers' data to the hacker.

  21. Darrell
    July 31, 2021 at 1:46 am

    Your voice sounds stupid – can't listen to it anymore.

  22. TrutleSpeed MKE
    July 31, 2021 at 1:46 am

    Why tf do you talk like this lmao

  23. Brian Jacobsen
    July 31, 2021 at 1:46 am

    The douchebaggery is beyond criminal.

  24. Gold Girl
    July 31, 2021 at 1:46 am

    What is with this voice? Sounds so robotic and far toooooo sllllow

  25. Py16777216
    July 31, 2021 at 1:46 am

    Yea, WF is a shady bank. It's certainly within their book of rules, all customers agree too without reading. What's the difference between a credit card and a line of credit for the rich. This seems like a risk mitigation tactic to cut off the less reliable. Like when my amazon credit line shrank by 75% for no reason besides underutilization for years. I could probably still use that credit line to buy almost anything well over the "limit" still but they did this to protect their bottom line in the event I became less credit worthy, now they can recheck if I charge very high and decide then if I'll be approved for the new line amount. People, please take control of your financial situation. Spend only within your actual means or conglomerate with others, roommates, subletters etc to devide bills for a better cheeper position. The only debt you should have is a fixed 30 year mortgage costing less than a third of your income.

  26. Rose Roses
    July 31, 2021 at 1:46 am

    This also happened in 2008. It's called a Credit Crunch. The banks are afraid to loan money because the economy is bad enough that people don't worry about their credit score and worry about surviving.

  27. Detroit Legend
    July 31, 2021 at 1:46 am

    Damn… Its happening

  28. Patty Zambrano
    July 31, 2021 at 1:46 am

    If it’s going to effect your credit score than don’t pay it? They are always doing scandals , this doesn’t surprise me. Other banks may follow so anticipate that.

  29. al jackson
    July 31, 2021 at 1:46 am

    What a bunch of horseshit. "Crash" may ass. It's just the bank with the worst treatment of customers in the history of banks finally going belly up as it should have done years ago.

  30. Dan K
    July 31, 2021 at 1:46 am

    There are other banks to take your money out there.

  31. Italian Stallion
    July 31, 2021 at 1:46 am

    All of you smooth brains don't know what a reverse repo is. That is why your credit is going away. You all voted for this

  32. Smart R.b
    July 31, 2021 at 1:46 am

    Am so glad I chose the right vendor on YouTube thomas davy on telegram has been so kind to me I love dealing with him, he is the plug

  33. Garron
    July 31, 2021 at 1:46 am

    Glass Steagal act of 1933 MUST BE REINSTATED!!!

  34. Polar Diagnostic
    July 31, 2021 at 1:46 am

    Wells Fargo just offered me a credit card

  35. Ian Smith
    July 31, 2021 at 1:46 am

    lol at the idiots who paid $650k for their 2 bedroom townhouses in California. you got scammed and your dump is about to be worthless

  36. Holly Ramos
    July 31, 2021 at 1:46 am

    I already moved most my money and moving the rest monday my business account is being completely moved I hate Wells Fargo