Despite the trend toward rising delinquencies, Wells Fargo & Co. is
increasing its lending to risky borrowers in the hopes of making money on
additional services like checking accounts and credit cards.
In a strategy it plans to announce today, the banking giant says it
will automatically enroll these borrowers in a financial education program
that will include free consultations in English or Spanish with
specialists who can help them create financial plans and try to clean up their
credit. This program will encourage auto-pay, which requires having a
The program, dubbed Steps to Success, will help address advocacy
groups’ previous allegations of predatory lending at Wells’ sub-prime lending
subsidiary, Wells Fargo Financial.
It’s the most comprehensive program of its type ever offered to
borrowers in the sub-prime market, says Stephanie Christie, a senior vice
president at Wells Fargo Home Mortgage.
Source: Los Angeles Times, E. Scott Reckard (12/05/2006)