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August 27, 2018 at 01:33 PM
Consumer Financial Protection Bureau building in Washington, D.C. Photo by Diego M. Radzinschi
In a blistering letter, the CFPB’s student loan ombudsman resigned Monday, charging that the agency, under Acting Director Mick Mulvaney, no longer protects consumers and is now serving the interests of the most powerful financial companies in America.
“After 10 months under your leadership, it has become clear that consumers no longer have a strong, independent consumer bureau on their side,” Seth Frotman, the agency’s assistant director and student loan ombudsman, wrote in his letter.
He accused Mulvaney of abandoning the interests of consumers.
Mulvaney is a Trump Administration selection and has consistently signaled that the agency has become much friendlier with business interests than the agency was under his predecessor, Obama Administration nominee Richard Cordray.
Frotman said that when the Education Department decided last year to stop cooperating with the bureau in oversight of the largest student loan companies, the agency did nothing.
He said that recently, senior leadership of the bureau blocked efforts to call attention to activities of “predatory for-profit schools”
