Wells Fargo starts small-dollar loans amid overdraft scrutiny

A Wells Fargo logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo

NEW YORK, Nov 16 (Reuters) – Wells Fargo & Co (WFC.N) introduced small-dollar loans to customers online, the bank said Wednesday, as overdraft fees draw greater scrutiny in the United States.

The loans are for $250 or $500 with a flat fee of $12 or $20, respectively, to eligible customers, the bank said. The loans are already available in a limited number of markets and will be offered nationwide by year-end.

The Biden administration has pledged to crack down on so-called surprise “junk fees” such as overdrafts that can catch customers off guard. Some major banks have responded by scrapping overdrafts altogether, reducing charges or changing policies to allow customers to opt in or out of the services.

Reporting by Lananh Nguyen; Editing by Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

Lananh Nguyen is the U.S. finance editor at Reuters in New York, leading coverage of U.S. banks. She joined Reuters in 2022 after reporting on Wall Street at The New York Times. Lananh spent more than a decade at Bloomberg News in New York and London, where she wrote extensively about banking and financial markets, and she previously worked at Dow Jones Newswires/The Wall Street Journal. Lananh holds a B.A. in political science from Tufts University and an M.Sc. in finance and economic policy from the University of London.

Source: reuters.com

Wells Fargo starts small-dollar loans amid overdraft scrutiny

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