CFPB Takes Action Against Wells Fargo for Prohibited Education Loan Servicing Techniques

CFPB Takes Action Against Wells Fargo for Prohibited Education Loan Servicing Techniques

Wells Fargo to pay for $3.6 Million Penalty to your Bureau

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against Wells Fargo Bank for unlawful student that is private servicing methods that increased expenses and unfairly penalized particular education loan borrowers. The Bureau identified breakdowns throughout Wells Fargo’s servicing procedure including failing continually to offer crucial re payment information to customers, charging you customers unlawful charges, and neglecting to upgrade credit report information that is inaccurate. The CFPB’s purchase calls for Wells Fargo to boost its customer student and billing loan payment processing practices. The organization additionally needs to offer $410,000 in relief to borrowers and pay a $3.6 million civil penalty to the CFPB.

“Wells Fargo hit borrowers with unlawful costs and deprived others of critical information needed seriously to manage their student effectively loan accounts,” said CFPB Director Richard Cordray. “Consumers should certainly count on their servicer to process and credit re re re payments precisely also to offer accurate and information that is timely we are going to carry on our work to improve the education loan servicing market.”

Wells Fargo is just a bank that is national in Sioux Falls, S.D. Education Financial Services is an unit of Wells Fargo this is certainly responsible for the bank’s pupil lending operations. Education Financial Services both originates and solutions student that is private, and currently acts roughly 1.3 million customers in every 50 states.

Student loans make up the nation’s second biggest unsecured debt market. Today there are many more than 40 million federal and student that is private borrowers and collectively these customers owe approximately $1.3 trillion. ادامه مطلب …