Seth Frotman claims Mick Mulvaney has favored powerful financial companies
A top official at the Consumer Financial Protection Bureau has resigned in protest, accusing Acting Director Mick Mulvaney of using the agency to favor America’s most powerful financial companies, The Associated Press has reported.
In a letter obtained by the publication, Seth Frotman notified Mulvaney of his resignation as assistant director and student loan ombudsman effective September 1. Frotman has been with the agency since its establishment in 2011, holding the student loan position since 2016.
Frotman cited sweeping changes to the bureau made in recent months as reasons for his resignation. He accused bureau leadership of undercutting enforcement of the law, undermining the CFPB’s independence, and shielding bad actors from scrutiny.
“When new evidence came to light showing that the nation’s largest banks were ripping off students on campuses across the country by saddling them with legally dubious account fees, bureau leadership suppressed the publication of a report prepared by bureau staff,” Frotman wrote.
Frotman also said that Mulvaney has damaged the bureau, betraying families and sacrificing the financial futures of millions of Americans in communities across the country.
According to the report, Frotman’s office is currently leading a lawsuit between the agency and Navient, one the biggest student lenders in the country. The office has worked to return $750 million to harmed borrowers since its establishment.
A CFPB spokesman said the agency does not comment on specific personnel matters. “We hope that all of our departing employees find fulfillment in other pursuits and we thank them for their service,” the spokesman also said.
