Seth Frotman: 5 Fast Facts You Need to Know | Heavy.com
Seth Frotman was the student loan ombudsman at the Consumer Financial Protection Bureau, the government agency charged with making sure banks and other lenders give consumers a fair deal.
On Monday Frotman stepped down from his job as a watchdog in charge of student loans.
Frotman said that he resigned because theCFPB was failing to serve ordinary Americans.
You can read Frotman's resignation letter, obtained by NPR, here.
Here's what you need to know about Seth Frotman:.
Frotman Said CFPB Chief Mick Mulvaney, Has 'Used the Bureau the Serve the Wishes of the Most Powerful Financial Companies in America.
Frotman's resignation letter, addressed to the CFPB's acting director Mick Mulvaney, has been obtained by NPR; you can read it here.
The letter charges that since Mulvaney took over the agency ten months ago, the CPFB has become little more than a tool for powerful corporations.
Frotman says the CFPB blocked publication of a report that would have shown how big banks were "ripping off" students by charging them "legally dubious" account fees.
Frotman also says that the CFPB has repeatedly folded under political pressure to stop its oversight of the student loan process.
In the process, Frotman says, the CFPB "has turned its back on young people and their financial futures.".
Frotman writes, "the bureau's new leadership has repeatedly undercut and undermined career CFPB staff working to secure relief for consumers.
Frotman Says the CFPB is Working to 'Protect the Misguided Goals of the Trump Administration'.
Frotman's resignation letter says he used to be "proud" to work for the CFPB.
He writes, "For nearly seven years, I was proud to be part of an agency that served no party and no administration; the Consumer Bureau focused solely on doing what was right for American consumers.".
But, Frotman charges, that all came to an end when Mick Mulvaney took over the bureau's leadership.
He says that under Mulvaney's leadership, the bureau is actively trying to cover up the impact of certain Trump administration laws which, he says, have already had a negative impact on consumers.
Frotman writes, "Recently, senior leadership at the Bureau blocked efforts to call attention to the ways in which the actions of this administration will hurt families ripped off by predatory for-profit schools.
" Frotman does not go into any details to explain what he means by this.
Frotman Has Served at the CFPB Since its Creation in 2011.
Frotman worked at the CFPB for seven years.
He started out as senior adviser to then-chief Holly Petraeus.
At the time, Frotman worked in the Office of Servicemember Affairs and was charged with ensuring that servicemembers were being treated fairly when they applied for and received loans.
Petraeus told NPR that it had been a "privilege" to work with Frotman.
Asked about his resignation, she said, "Seth is a true public servant.
I think he's leaving for the purest of motives: He wants to help student borrowers.".
Mulvaney Once Called the CFPB a 'Sick, Sad Joke'.
Before Mulvaney was acting head of the CFPB, he was a Republican congressman from South Carolina and a harsh critic of the CFPB himself.
You can watch him talking about the agency to the Credit Union Times here.
Mulvaney criticized the CFPB for being excessively bureacratic; he said it was both unaccountable and independent.
He described an "adversarial" relationship with the CFPB.
Mulvaney called the CFPB "a joke, in a sick sad way.".
Mulvaney's Likely Replacement as CFPB Chief Helped Oversee Homeland Security and Has Been Questioned About Her Role in Separating Families at the US-Mexico Border.
Mick Mulvaney was never expected to last long as the CFPB chief; he is the acting director.
The Trump administration has nominated Kathy Kraninger as the CFPB's new chief.
Kraninger was approved last week by the Senate Banking Committee and her nomination will go in front of the Senate.
Kraninger's critics say that she lacks experience in consumer protection.
They also say that she played a role in the policy of separating children from their parents crossing the border.
Kraninger currently oversees the budget for both the Department of Homeland Security and the Department of Justice.
Her critics — notably Senator Elizabeth Warren and Sherrod Brown — say that Kraninger may have played a role in policy planning for Jeff Sessions' controversial "zero tolerance" policy for people illegally crossing the US-Mexico border.
You can read the letter that Elizabeth Warren and some of her colleagues sent to Kraninger, asking about her role in Zero Tolerance and in the separation of families at the border, here.
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