CFPB Investigating Wells Fargo on Student Loan Servicing – WSJ
The CFPB has been ramping up its investigations of student loan servicers and said last week that it has made it a priority to take enforcement actions against companies engaged in illegal servicing practices. In total, there are fewer than 10 major student loan servicers. Given the small number of players in this market, enforcement actions could lead to significant changes in the servicing industry. The regulator, meanwhile, is also exploring new rules for student loan servicing.
The CFPB, along with several state attorneys general, have also been investigating Navient Corp., the largest student loan servicer.