Discover Financial Faces Us Probe Over Student Lending

The CFPB had said in December it would start supervising the seven largest student loan servicers to ensure fair treatment to borrowers. The watchdog had pegged the student loan debt at $1.2 trillion. The company also disclosed that the Federal Deposit Insurance Corp (FDIC) has notified it of “potential deficiencies” in Discover Bank’s anti-money laundering program. The Bank Secrecy Act requires companies to assist government agencies detect and prevent money laundering. Discover Bank is cooperating with the agencies and enforcement action from either could include demands for civil money penalties, the company said.

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