Citigroup Inc. said Monday that regulators are looking into its
practices around servicing student loans.
The bank didn't say which regulator was behind the
investigation, but it is believed to be part of the Consumer
Financial Protection Bureau's broader probe into financial
institutions that service student loans, according to a person
familiar with the situation.
The CFPB is examining whether companies make it unnecessarily
difficult for borrowers to repay their loans.
The bank said it is cooperating with the investigation. The bank
sold the bulk of its student loan portfolio several years ago.
Last month, Discover Financial Services Inc. settled with the
CFPB after it was accused of practices like overstating the minimum
payments that borrowers had to make, and denying borrowers
information about how much they could receive in federal income-tax
benefits.
Write to Christina Rexrode at christina.rexrode@wsj.com
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