Trump’s consumer agency suppressed report that banks are ripping off student borrowers

The student loan ombudsman at Consumer Financial Protection Bureau, the federal agency created by Elizabeth Warren and now run by Trump officials, resigned in protest today, saying the Trump administration “has turned its back on young people and their financial futures.”

In a scathing letter, Seth Frotman said, “At every turn, [you] have silenced warnings by those of us tasked with standing up for service members and students,” referring to active military personnel. He also accused Trump’s appointees of suppressing a staff report that determined large banks are “ripping off students on campuses across the country by saddling them with legally dubious account fees.”

When Frotman’s office sued for-profit schools and student lenders, it got no cooperation from Betsy DeVos, Trump’s education secretary.

A spokesman for the Consumer Federation of America called Frotman’s departure “a loss for American consumers” and lamented the Trump administration “has seized control of an independent consumer watchdog” and is “strangling” it from “looking out for the rights of ordinary Americans.” Warren, now a U.S. Senator representing Massachusetts, “took to social media on Monday” to decry acting CFPB director Mike Mulvaney “siding with greedy student loan companies over students and military families.”

Read story here.

Your Comment