National Consumers League

NCL statement on CFPB student loan watchdog chief's protest resignation

August 28, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC - Yesterday, Seth Frotman announced his resignation as the Consumer Financial Protection Bureau’s (CFPB’s) Student Loan Ombudsman. The following statement is attributable to Sally Greenberg, executive director of the National Consumers League:

“Every day Seth Frotman went to work, he valiantly fought for the 44 million Americans that are struggling with student loan debt. As Frotman wrote in his resignation letter, the Bureau under Acting Director Mick Mulvaney has abandoned its Congressionally-mandated mission to protect consumers from predatory lenders. Instead, current CFPB leadership seems to believe that its goal is to empower some of the most powerful financial interests in America to continue victimizing vulnerable students.

“Unfortunately for consumers, Frotman’s assessment of Mulvaney’s tenure is spot-on. Making matters worse, the current nominee to become the permanent CFPB Director, Kathleen Kraninger, has given every indication that she will continue Mulvaney’s work to undermine the CFPB’s ability to protect consumers. NCL urges Congress to only confirm a CFPB director who will fulfill the intent of Congress for the Bureau to protect consumers.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America's pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.