The Consumer Financial Protection Bureau said Monday that Wells Fargo had engaged in illegal student loan servicing practices by processing payments to maximize late fees.

Wells agreed to pay a $3.6 million penalty and at least $410,000 to compensate borrowers who were charged illegal late fees during a two-year period from 2010 to 2012. Wells also was ordered to improve its consumer billing disclosures and to correct errors on credit reports.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.