CFPB fines Wells Fargo $3.6 million for deceptive student loan practices

The Consumer Financial Protection Bureau (CFPB) said Monday it fined Wells Fargo & Co. $3.6 million as part of a civil penalty for illegal student loan servicing, and that the bank will also pay $410,000 in relief to borrowers.

The CFPB found “breakdowns” in the Wells Fargo WFC, -0.04% servicing process, among them that the bank didn’t provide important payment information to consumers, charged illegal fees and didn’t update inaccurate credit report information.

“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 a statement.

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