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CFPB’s student loan ombudsman slams the door on his way out

Joe Mont | August 28, 2018

The Consumer Financial Protection Bureau’s student loan ombudsman quit the agency this week. But he is not going quietly.

“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 CFPB’s former assistant director and student loan ombudsman, wrote in a letter to Acting Director Mick Mulvaney that was made public on Aug. 27. 

The student loan ombudsman is a position mandated by the Dodd-Frank Act.

“Each year, tens of millions of student loan borrowers struggle to stay afloat,” Frotman added. For many, the CFPB has served as a lifeline, cutting through the red tape, demanding systematic reforms when borrowers are harmed, and serving as the primary financial regulator tasked with holding student loan companies accountable when they break the law.”

“I had hoped to continue this critical work with you and staff and by using your authority to stand up for...

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