Tag Archives: Mulvaney

“I Quit”

Principled people who can do so are fleeing the Trump Administration. Those who cannot afford to take the moral high ground–the government workers with mortgages to pay and children to educate–are valiantly trying to hold their agencies accountable to the rule of law.

Talking Points Memo, among others, has reported on the departure of one who just left: the top watchdog overseeing student loans.

The Consumer Financial Protection Bureau’s “Student Loan Ombudsman,” responsible for guarding student borrowers against predatory lenders and scammers, has resigned in a scathing letter aimed at acting CFPB director Mick Mulvaney.

“Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting,” Seth Frotman’s resignation letter, obtained by NPR, read. “Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America.”

Not exactly surprising, in an administration where up is down, failure is success, accurate reporting is “fake news,” and corrupt practices are touted as “good business.”

Frotman’s job was to monitor and review of thousands of complaints from student borrowers. The Obama administration had introduced a number of regulations intended to protect those student borrowers against fraudulent practices; according to Frotman, Mulvaney and Betsy DeVos have worked “diligently” to eliminate those protections.

Frotman’s letter pointed to specific wrongdoing by Mulvaney, NPR reported, including the alleged suppression of a report from his office revealing that big banks were “saddling [students] with legally dubious account fees.”

In May, NPR noted, Mulvaney called for Frotman’s office to be incorporated into the Office of Financial Education, effectively proposing to remove Frotman’s office from direct enforcement actions and shifting it to an educational role.

Regarding another change — the Department of Education’s announcement last year that it would no longer share federal student loan oversight data with the CFPB — Frotman wrote: “The Bureau’s current leadership folded to political pressure… and failed borrowers who depend on independent oversight to halt bad practices.”

NPR has posted a copy of Frotman’s letter here.

My husband often reminds me that–while Americans are distracted by our demented President’s tweets, rages and sundry other embarrassing and destructive behaviors–his administration is busily dismantling the structures of accountable and legitimate governance–stacking the federal courts with right-wing ideologues, eliminating regulations protecting air and water quality, bleeding public schools of the resources needed to educate the country’s children, empowering theocrats, and weakening the rules that restrain the rich and powerful.

Even if November brings the hoped-for “blue wave,” and installs a Congress that takes its oversight responsibilities seriously, it will take years to restore both the rule of law and the American people’s ability to trust that their government is operating on their behalf.