JPMorgan has told customers with personal credit lines at First Republic Bank that it will no longer offer those lines when they come up for renewal, according to correspondence viewed by The Information. The failed lender, which has been sold to JPMorgan, had offered personal lines of credit to its wealthy client base as a key way of attracting customers.
A person familiar with the matter said JPMorgan doesn’t offer personal lines of credit, which is why the product line is being shut down. Clients are being offered the option to transform their revolving credit lines into fixed-term loans at the same rate for a period of up to five years. Customers are also being asked if they would prefer to pay off their credit lines.