The bank is also accused of charging late fees for borrowers who paid their monthly amount through multiple partial payments instead of one full payment. As well as when borrowers made payments on the last day of their grace periods.
Without eclipsing two months, Wells Fargo and Amazon have announced they are discontinuing their student loan program. On July 21st, the companies announced that Amazon’s Student Prime members would get a discounted private loan at a 0.5% interest rate. In order to qualify for the discounted interest rate, the borrower would have to take out a new loan with Wells Fargo. The other way to apply would be to consolidate or refinance an existing private loan with Wells Fargo.
A spokesperson for Amazon confirmed that the promotion has officially ended. However, it is unclear why the venture had ended so quickly. As the spokesperson did not explain the why behind the partnership for discounted student loans ended. CNNMoney, who is reporting this story, saw no immediate response for a request for comment from Wells Fargo to shed any light on what exactly is going on.
The partnership between Wells Fargo and Amazon only offered the discount to Amazon Prime Student members. The annual cost of the service is $49 which nets the consumer: free two-day shipping, unlimited streaming of TV shows, movies, and music, as well as additional discounts across the site.
“This is a tremendous opportunity to bring together two great brands. At Amazon and Wells Fargo, delivering exceptional customer service and helping customers are at the center of everything we do,” said John Rasmussen, Wells Fargo’s head of personnel lending group, in a statement when the program was first launching. “We are focused on innovation and meeting our customers where they are – and increasingly that is in the digital space.” The original intent of the program seems clear. However, it still remains a mystery why it fell apart so fast.
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