Wells Fargo Leads Banks Quitting Deposit Advance Market
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Wells Fargo & Co. and U.S. Bancorp are among lenders that plan to stop offering advance loans to direct deposit customers as the business comes under pressure from regulators and consumer activists.
Wells Fargo, the biggest U.S. home lender, is shutting down its service starting Feb. 1, the company said today in a statement. Minneapolis-based U.S. Bancorp, the nation’s largest regional lender, said its program would end Jan. 31, as did Cincinnati-based Fifth Third Bancorp. Regions Financial Corp. announced Jan. 15 that it would discontinue its Ready Advance service this year.