Wells Fargo & Co (WFC), one of the biggest lenders for new and used car purchases in the United States, announced on Tuesday that it would stop accepting loan applications to a majority of its independent car dealer clients due to economic crisis amid the coronavirus pandemic.
“We are doing everything we can to help customers weather the economic impacts of this health crisis … we also have an obligation to review our business practices in light of the economic uncertainty presented by COVID-19,” Wells Fargo’s spokeswoman said in an email.
The financial services company said in April that it had set aside nearly $4 billion emergency funds to cover expected loan losses due to the coronavirus outbreak.
Wells Fargo already started offering fewer home loans during the coronavirus outbreak.
The U.S. Federal Reserve has “temporarily and narrowly” modified its growth restrictions on Wells Fargo’s balance sheet.