Discover's student loan-servicing actions investigated by CFPB
Discover Financial Services is being investigated by a federal regulator over student loan-servicing practices and its compliance with a 2015 consent order involving the business.
Discover is cooperating with the Consumer Financial Protection Bureau, according to its annual regulatory filing posted Wednesday. The lender said it is enhancing the compliance plan it submitted to the CFPB in response to the consent order.
Discover in 2015 agreed to refund $16 million to consumers and pay a $2.5 million fine to resolve allegations of illegal loan-servicing practices. The CFPB said at the time that the bank overstated minimum amounts due on billing statements and denied consumers information needed to obtain income tax benefits.