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August 23, 2016

Stroock Special Bulletin

By: Julia B. Strickland, Quyen T. Truong, Stephen J. Newman, Brian C. Frontino

On August 22, 2016, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) announced a $4.1 million settlement with Wells Fargo Bank for allegedly illegal student loan servicing practices.  While the press release emphasized student loans and general servicing practices as regulatory priorities, this enforcement action also demonstrated the CFPB’s continuing focus on payment processing as a target for supervision and enforcement activity – including, specifically, the payment ordering and other processing issues that have been the target of class action litigation.