FOR IMMEDIATE RELEASE
August 28, 2018
Contact: Paydon Miller
(202) 734-6543 | firstname.lastname@example.org
CFPB Student Loan Ombudsman Steps Down In Protest
Washington, DC – Yesterday, Seth Frotman, the Consumer Financial Protection Bureau’s (CFPB) student loan ombudsman resigned. He cited the Trump Administration’s “abandon[ment] of consumers” and policy of “shielding bad actors from scrutiny” as reasons for his departure.
In response, Reid Setzer, Government Affairs Director for Young Invincibles, released the following statement:
“Mr. Frotman’s resignation from the CFPB sends yet another signal that the Trump Administration has no intention of protecting or serving students. From the CFPB to the Department of Education, this administration is systematically removing all protections for students and borrowers from predatory schools and loan servicers. Students and borrowers are watching and Young Invincibles will continue to stand up for them, calling out these damaging decisions and raising up student voices.
Young Invincibles thanks Mr. Frotman for his years of service on behalf of consumers and student loan borrowers. He was part of a team that helped recover more than $750 million for defrauded student loan borrowers and dug deep into student loan servicing practices to root out bad behavior and enact reforms. As part of Mr. Frotman’s work, the CFPB’s took enforcement actions against the deceptive practices of Navient and Corinthian Colleges, clearly demonstrating that the Bureau is an effective advocate for student loan borrowers when it wants to be. Unfortunately, his letter of resignation demonstrates that under its current leadership, the CFPB is more concerned with protecting bad actors in the lending and servicing industries than protecting student loan borrowers.”