Waters Statement on CFPB Student Loan Ombudsman Announcement
Washington, DC, August 21, 2019
Following the announcement that Robert Cameron, former head of compliance and risk mitigation at the Pennsylvania Higher Education Assistance Agency (PHEAA/FedLoan Servicing), will serve as the Private Education Loan Ombudsman at the Consumer Financial Protection Bureau (CFPB), Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, issued the following statement.
“In August 2018, former CFPB Assistant Director and Student Loan Ombudsman Seth Frotman shared with the Committee a resignation letter he sent to Mick Mulvaney alleging that the agency's new leadership had ‘abandoned the very consumers it is tasked by Congress with protecting.’ Nearly a year after Mr. Frotman stepped down from his position, the Trump Administration appears to be continuing its efforts to ignore the needs of consumers by appointing, as his replacement, a high-ranking official from one of the nation's largest student loan servicers. This servicer has faced a myriad of legal challenges, along with criticism by the Education Department's Inspector General and the CFPB for its shoddy work that harmed student borrowers. I am deeply concerned by this new appointment made by Treasury Secretary Mnuchin, in consultation with Director Kraninger, and will continue to conduct rigorous oversight of the CFPB to ensure it is fulfilling its duties to protect our nation’s borrowers from unlawful student loan servicing practices.”
Chairwoman Waters has long-expressed concerns about the Trump Administration’s pattern of appointing or nominating individuals to run agencies with missions they oppose, including Ben Carson, Secretary of the U.S. Department of Housing and Urban Development; Mick Mulvaney, the unlawfully appointed acting Director of the Consumer Financial Protection Bureau; and Scott Garrett, who was nominated to be the President of the Export-Import Bank.