Wells Fargo Bank, N.A.
On August 22, 2016, the Bureau issued an order against Wells Fargo Bank, N.A. to address its illegal private student loan servicing practices that increased costs and unfairly penalized certain student loan borrowers. The Bureau found that Wells Fargo violated the Consumer Financial Protection Act of 2010’s prohibition against unfair and deceptive acts and practices and the Fair Credit Reporting Act by processing payments in a way that maximized fees for many consumers, misleading borrowers about the consequences of making partial payments, charging late fees even though consumers had made timely loan payments, and failing to update and correct inaccurate information reported to credit reporting companies. Because of Wells Fargo’s conduct, thousands of student loan borrowers encountered problems with their loan or received misinformation about their payment options. The order required Wells Fargo to improve its consumer billing and student loan payment processing practices, enhance disclosures provided with its billing statements, remove any negative student loan information inaccurately or incompletely provided to a consumer reporting company, to provide at least $410,000 in relief to borrowers, and to pay a $3.6 million civil money penalty. On December 20, 2022, the Bureau terminated the order.