Although the specifics of the investigation are unclear, it appears that the probe on Wells Fargo began back in late 2014. Wells Fargo is the second largest originator for private student loans in the United States. They stopped servicing federal student loan accounts in 2011 when then they transferred their servicing of federal loans to a third-party.
This probe comes amidst a recent string of investigations by the Bureau of the estimated $1.2 trillion student loans servicing industry. An enforcement action was announced with Discover Student Loans in July, and the CFPB is currently watching many of the student loan servicing companies, including big student loans servicing names such as Navient and Citibank.
Currently, there are less than 10 student loan servicing companies. With the recent string of probes focusing on student loan payment processing and how servicers handle distressed borrowers, it seems the CFPB is giving much necessary attention to student loan servicing.
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If enforcement actions are taken against the student loan servicers, it may lead to significant changes for the student loan servicing industry and may serve to curb some of the practices that impact student loan borrowers that are struggeling stay current on their loans and avoid default.