08.28.18

Rep. Takano Statement on the Resignation of Student Loan Ombudsman at the CFPB

“The Consumer Financial Protection Bureau was created by Congress to protect consumers, including students, from misleading and fraudulent practices and hold unlawful companies like ITT Tech and Corinthian Colleges accountable. Since its inception, it has helped return $750 million to defrauded student loan borrowers.

“However under this Administration, and Acting Director Mulvaney’s leadership, the Consumer Financial Protection Bureau is not doing its job. This could not be made clearer than in Mr. Frotman’s resignation letter, where he states that under Acting Director Mulvaney’s leadership, the Bureau has abandoned its mission to protect consumers to ‘serve the wishes of the most powerful financial companies in America.’

“I commend Mr. Frotman for his service and condemn the continued leadership of Acting Director Mulvaney. Many Americans who benefit from a strong, independent Consumer Financial Protection Bureau have served our nation in uniform, many are students with goals they want to accomplish, and many are looking for better opportunities for themselves and their families. The Trump Administration is abdicating its responsibility to put the needs of the American people first to give special treatment to for-profits and special interests.”

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