Illegal student loan late fees cost Wells Fargo $4 million
Wells Fargo has to pay $4 million for illegally charging late fees on some of its student loans.
A $3.6 million penalty goes to the Consumer Financial Protection Agency, and the bank also has to refund $410,000 in fees.
The bank had incorrectly charged some people who began their payments on the last day of their 6-month grace period and then failed to notify borrowers of the mistake and refund their money. It also processed payments for people with multiple loans in a way that maximized late fees.
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Dana is a freelance writer from Florida, the state that winter forgot. She likes video games, cats, fantasy novels, and complaining about the weather. Follow her on Twitter for intermittent whining about the First Amendment.