On August 3, 2015, a national bank revealed in an U.S. Securities and Exchange Commission filing that its student loan servicing practices are under investigation by the Consumer Financial Protection Bureau (“CFPB”). The bank indicated that it is cooperating with the investigation and anticipates the CFPB may order it to remediate its customers and/or impose penalties.
The investigation comes approximately two weeks after the CFPB issued a consent order against another national bank regarding its student loan servicing practices. More information on that investigation may be found here.