The Consumer Financial Protection Bureau yesterday reached a $4 million settlement with Wells Fargo over allegations the bank charged illegal fees and failed to inform borrowers of their payment options, the National Law Journal reported. Wells Fargo will pay a civil penalty of $3.6 million to the consumer agency and provide $410,000 in relief to borrowers. The CFPB’s enforcement action marked the latest involving student loan practices that the agency has blamed for driving borrowers into default. “Wells Fargo hit borrowers with illegal fees and deprived others of critical information needed to effectively manage their student loan accounts,” said Richard Cordray, the CFPB’s director, in a prepared statement. “Consumers should be able to rely on their servicer to process and credit payments correctly and to provide accurate and timely information and we will continue our work to improve the student loan servicing market.” According to a 34-page consent order, Wells Fargo maximized late fees by spreading payments across several loans in an account rather than portioning the funds to satisfy some of the amounts owed in a billing cycle. Also, the bank failed to inform borrowers with multiple loans that a partial payment could satisfy at least one account. Instead, Wells Fargo incorrectly advised borrowers that anything less than a full repayment in a billing cycle would not satisfy any debt obligation, according to the consent order.