The Consumer Financial Protection Bureau (CFPB) said yesterday that it had ordered Citibank to pay $6.5 million for allegedly harming borrowers with student loan servicing failures, Reuters reported. The agency said it ordered Citibank to end illegal loan practices and pay $3.75 million in redress to consumers and a $2.75 million civil penalty. Student debt can carry tax benefits, but Citi failed to guide customers through paperwork that could lead to tax savings, according to the agency. Some clients were also made to pay late fees and interest when they were eligible to defer such loan payments, said the agency.
