CFPB Student Loan Ombudsman Resigns Leaving Letter Criticizing Current Leadership

Seth Frotman, the Student Loan Ombudsman and Assistant Director at the CFPB resigned last week, leaving a resignation letter that has been widely circulated in the press because of its pointed criticism of the current leadership at the CFPB.

In the letter, Frotman writes to Acting Director Mick Mulvaney, stating that “under [Mulvaney’s] leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting.”  Frotman claims that under Mulvaney, the CFPB has made sweeping changes which include: undercutting the enforcement of the law, undermining the CFPB’s independence, and shielding bad actors from scrutiny.  These actions, among others, taken by the CFPB leadership are hurting families, Frotman writes, and these are his reasons for resignation.  Frotman’s resignation became effective on September 1, 2018.

A copy of Frotman’s resignation letter, as widely reported in the press, is available here.