WASHINGTON, D.C. – Today, Seth Frotman, the Assistant Director and Student Loan Ombudsman with the Consumer Financial Protection Bureau (CFPB) resigned after seven years of government service with the agency. His resignation is effective September 1, 2018.
In response, Ashley Harrington, a policy counsel with the Center for Responsible Lending Counsel released the following statement:
It is unfortunate for the 44 million student loan borrowers who together now owe in excess of $1.5 trillion to learn that the dedicated civil servant who shared their concerns has departed the CFPB. As the agency’s Student Loan Ombudsman, Seth Frotman protected student borrowers from predatory lenders and was a public servant who treated every student loan complaint with the seriousness it deserved. He was an important part of an agency team who together returned $750 million to harmed student loan borrowers.
Seth Frotman’s departure leaves both a void as well as serious concerns about the future of the agency often termed the ‘consumer cop on the beat’. Created to ensure American consumers wouldn't be targeted for financial abuse, CFPB actions and priorities under Acting Director Mick Mulvaney represent a systematic departure from helping people to helping businesses that continue to prey upon unsuspecting consumers.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Charlene Crowell at firstname.lastname@example.org.