COLUMBIA, S.C.–One small credit union here is looking to capture customers of Wells Fargo angered by the bank’s decision to exit the personal lines of credit business.
As CUToday.info reported here, Wells Fargo will no longer offer the credit lines, which typically let users borrow $3,000 to $100,000, as a way to consolidate higher-interest credit card debt, pay for home renovations or avoid overdraft fees on linked checking accounts.
For those who use the product for overdraft protection and who have been given 60 days’ notice of the change, the move has angered many customers, according to multiple reports.
In response, the $113-million Caro FCU said it is working to “scoop up all the customers who will be running for the doors.”
Caro FCU said it is “geofencing” all the local Wells Fargo branches in the Columbia, S.C. area surrounding its field of membership, which it said will allow the CU to put its messaging in front of people around those branches.
The credit union is working with agency Your Marketing Co. on the project.
“Particularly now as people are working to recover from COVID-19’s financial impact, it’s unconscionable that Wells Fargo would just turn people’s lines of credit off,” said CEO Anne Shivers said. “Not only does it shut off access to fund, but it also damages their credit scores. It’s not right, so we’re going to do something about it.”
‘Targeted Approach’
Added Your Marketing Co. CEO Bo McDonald, “I’m so proud of Caro FCU and Anne for taking this targeted approach to provide help to these consumers whose big bank is treating them as just a number. Every credit union should be leveraging opportunities like this to demonstrate the true credit union difference and ensure consumer awareness of how relevant credit unions truly are.”