Wells Fargo WFC -0.94% & Co. is severing ties with a company that helps inmates set up bank accounts, establish credit and conduct a variety of services that are difficult to perform from behind bars, the company’s founder said.
Prisoner Assistant has encountered skeptical law enforcement officials and jittery banks since Michael Benanti launched the company about six years ago. A former federal prisoner who served 16 years behind bars for conspiring to rob a bank, Mr. Benanti and his company were the subjects of a January story in the The Wall Street Journal.
Mr. Benanti said Wells Fargo recently informed him that he has until Jan. 5 to close his client accounts, more than 600 total, without giving a reason. “They have administered my accounts for Prisoner Assistant for almost six years, with no incident,” he said of Wells Fargo. “We keep our accounts in good standing, and there is never a bounced check or overdrawn account.”
A spokeswoman for the San Francisco-based lender, Richele J. Messick, declined to comment. “When it comes to customer accounts, due to privacy and confidentiality, we do not share specific details,” she said in an email.
Prisoner Assistant requires its clients to grant power of attorney to the company. For $5 a month, the company will manage a prisoner’s bank account. For $24 a month, Prisoner Assistant will pay bills, pick up mail, make wire transfers and help an inmate get credit cards and lines of credit. The most expensive package costs $50 a month.