Giving Credit Where Credit's Due: Three Cheers for Wells Fargo

"Wells Fargo goes on the offensive with 'at risk' credit card holders," reports Mark Calvey in yesterday’s San Francisco Business Times. Wells Fargo is writing to customers “it believes may be in the danger zone,” he writes, “offering to set up automatic payments, design a repayment plan or connect them to a consumer counseling service.”

Calvey goes on to quote from the bank’s “warm and friendly approach”:

"We recognize that in a changing economy some of our customers may experience a period of financial challenges and we would like to help. … There are caring Wells Fargo representatives waiting to speak with you. … Wells Fargo strives to meet the financial needs of our customers, and intends to work with customers through both prosperous and challenging times."

“Fantastic!” I thought – but frankly, it sounded too good to be true. So I sent out a couple of emails – one asking Wells Fargo for more info. Lisa Westermann, Assistant Vice President at the bank, responded, saying that Wells Fargo first conducted a test mailing, where “the response has been mostly positive.” 

She also pointed out some of the other services Wells Fargo offers its customers, including a variety of online banking tools, payment options, and account alerts – about cash advances, when customers are approaching their credit limits, payment due dates, etc. And to help last-minute payers, Wells Fargo accepts payments up until midnight PST on the due date as on-time payments.

I was curious to know which credit counseling agency the bank was partnering with for its customers. It’s Money Management International (MMI) consumer credit counseling service, which Lisa describes as “an accredited non-profit organization that provides confidential financial guidance, free credit counseling services, debt management assistance and comprehensive housing counseling certified by the U.S. Department of Housing and Urban Development.”

What Does Our Expert Say?
Gerri Detweiler, Credit Advisor for Credit.com, gives MMI and Wells Fargo high marks. “This is a much better approach than the one many card issuers have been using -- yanking credit lines and raising interest rates,” Gerri explains. “Most of the consumers I talk with say they want to pay their bills but their lenders won't work with them. Wells Fargo is taking the right approach by being proactive.”

Isn't it great to hear about a bank doing right by its customers? Has Wells Fargo reached out to you? Please let us know what you think of the help you’ve received.

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Comments

[Kim McGrigg]

I appreciate you calling attention to this important issue. I have worked with MMI for many years and I totally agree that a proactive approach is necessary. The sooner a consumer receives help, the more options they have available to them.

Proposals that are win-win have the greatest chance of success, and that’s exactly what this is. The bank obviously benefits by receiving timely payments, but the consumer also ends up on the winning side by responsibly handling his credit obligations. During these turbulent financial times, it is more critical than ever for consumers to keep a watchful eye on their spending. The tools Wells-Fargo has put in place help them do just that. MMI is a National Foundation for Credit Counseling Member Agency, and we support their efforts to assist Wells-Fargo customers.

Gail Cunningham
Senior Director
National Foundation for Credit Counseling

[Steve]

Have to call BS here. I just recieved a notice from Wells Fargo that my card limit is cut from 12000 to 5000 and they are raising my rate on top of that. I owe 4 grand to them. I have never missed a payment and always give a 100 bucks more than the minimum payment. I am very upset. Wells Fargo is using the same tactics as the others so dont fool yourself.Yeah they offered all there programs mentioned above in there letter but its a slap in the face to say we want to help you and at the sametime rase my rates. I am paying this card off in January and will never use WF again. I have had that card for 10 yrs and never been late or missed a payment. I dont need there help. I pay my bills just fine. Its just a money grab as the 25 billion in tax money WF took must not be enough. I hear the government is trying to pass a law to stop these banks from raising the rated of customers who have not missed any payments but it will be to late. The banks are making sure they get it done. Funny over the last year how many times WF has sent me notice of raising my limit and low interest checks because I was such a good customer... all of a sudden I'm not? WF are nothing more than thieves in my opinion.

[Expert Credit Repair]

Hi Nancy: I am sorry to say that I am skeptical. I wish I wasn't. I have seen too many people go to those credit couselling services only to wind up with late payments on their credit report because the counseling service does not distribute their payments to their creditors timely.
:)