Examiners at the CFPB found that some student loan servicers aretreating borrowers unfairly and engaging in “illegal practices,”according to a new report released Tuesday.

The bureau's latest supervisory highlights report revealed that oneor more servicers divided payments to maximize the late feescharged to the borrower. The report included supervisory activitiesfrom March 2014 through June 2014.

“Where the borrower made a payment that was less than the totalamount due, CFPB examiners found that one or more servicersallocated the amount proportionally to each loan,” the report read.“That resulted in borrowers getting charged a minimum late fee onall of their loans and all of their loans becoming delinquent. Supervisioncited these fee-maximizing practices as unfair under the Dodd-FrankAct.”

The report also said one or more servicers overstated theminimum payment due on periodic statements and online accountstatements sent to borrowers by including amounts in deferment. Insome cases, servicers also failed to provide borrowers withaccurate tax information.

“This practice may have caused some consumers to lose up to$2,500 in tax deductions. Examiners found this failure to provideaccurate information to be unfair and deceptive under theDodd-Frank Act,” the CFPB said.

According to the report, examiners also discovered that some servicers were makingillegal debt collection calls.

“Students are already struggling with crushing amounts of loandebt. Student borrowers deserve better than illegal practices as theywork to pay back their loans,” CFPB Director Richard Cordray said.“All borrowers should be treated fairly by loan servicers, andthrough our supervision program, we intend to hold them accountablefor how they treat borrowers.”

The CFPB's findings regarding mortgage servicers were alsoincluded in the report. Examiners found that one or more mortgageservicers had delayed permanent loan modifications.

“Once the borrower has successfully completed the trialmodification, the servicer should then covert it into a permanentloan modification. Where there were delays in this conversion,examiners found that consumers were harmed because they did notpromptly receive the benefits of the terms of the permanentmodification,” the CFPB said.

According to the report, some mortgage servicers were notexecuting borrowers' signed loan modification agreementseither.

“Instead, after a significant period of time, the servicers sentborrowers updated agreements with materially different terms,” theCFPB report read. “These misrepresentations about the availableterms affected the borrowers' payments, whether they would acceptthe modification, and how they could budget based on their expectedpayment.”