“The promotion has ended,” a bank spokesperson said. After more than a year of preparation, Amazon’s partnership with Wells Fargo to sell student loans barely lasted six weeks. An anonymous reader quotes Bloomberg:

It’s another black eye for Wells Fargo’s student loan business, which just last week agreed to pay $3.6 million to the federal Consumer Financial Protection Bureau to settle claims that it misled borrowers, illegally charged certain fees, and processed payments in a way designed to maximize late fees. Wells Fargo neither admitted nor denied wrongdoing.

The article sites a consumer advocate who both Amazon and Wells Fargo were hiding the high costs of the loans, as well as their inflexible terms for repayment, in a “cynical attempt to dupe current students.” The Washington Post noted that interest rates for community colleges and for-profit institutions “can climb to nearly 14%.”

Read more of this story at Slashdot.

Source: Slashdot – Amazon Suddenly Stops Selling Student Loans