Wells Fargo Faces CFPB Inquiry on Student Loan Servicing

October 9, 2015

The Consumer Financial Protection Bureau is investigating Wells Fargo over its student loan servicing practices, The Wall Street Journal reported on Thursday.

Citing multiple anonymous sources, the Journal reported that the consumer bureau’s inquiry into the bank goes back at least to late last year. It’s not clear what loan-servicing issues the CFPB is investigating.

The CFPB has recently stepped up its scrutiny of servicing of both private and federal loans. Officials at the consumer bureau last month said they were exploring new regulations for the industry.

The bureau has also said it is prioritizing enforcement efforts of student loan servicers.

In July, Discover Bank agreed to pay $18.5 million to resolve the CFPB’s allegations of illegal loan servicing practices. The CFPB is also considering legal action against Navient, the company disclosed to investors last month.

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