Wells Fargo & Co. on Monday agreed to pay $3.6 million to the U.S. Consumer Financial Protection Bureau and $410,000 in restitution to settle the regulator’s claims over student-loan servicing policies that it says boosted costs for borrowers.
Thousands of student loan borrowers encountered problems with their loans or received misinformation about their payment options because of breakdowns in Wells Fargo’s servicing process, the bureau said.
“Wells Fargo hit borrowers with illegal fees and deprived others of critical information needed to effectively manage their student loan accounts,” CFPB Director Richard Cordray said in the statement.
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