The Consumer Financial Protection Bureau’s (CFPB) top student loan watchdog in charge of protecting student borrowers from predatory lending practices resigned from his position yesterday, stating in a letter to acting director Mick Mulvaney:
“Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting. Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America… The current leadership of the Bureau has turned its back on young people and their financial futures.”
Since 2011, the CFPB has handled more than 60,000 student loan complaints and, through its investigations and enforcement actions, returned more than $750 million to aggrieved borrowers. According to NPR, the Trump Administration has increasingly sidelined the CFPB’s student loan office over the last year.
Just last week, Heller voted to move forward with the confirmation of Kathy Kraninger, Trump’s controversial pick to be the next CFPB director who is expected to follow in Mulvaney’s footsteps to gut the agency from within. Nevadans deserve to know what Heller will do to protect them—will he take action, or will he keep looking the other way and do nothing while the nation’s top consumer watchdog turns its back on students?
Nevada Democratic State Party spokesperson Sarah Abel released the following statement:
“Once again Dean Heller is complicit while the Trump Administration works to help Wall Street and big financial institutions take advantage of regular people trying to achieve their dream of higher education. The CFPB is supposed to protect student borrowers against questionable practices by predatory lenders and debt collectors, but Trump and Heller have allowed the nation’s consumer watchdog to get sidelined. Heller hasn’t been standing up for Nevada students, but he’s going to be replaced in November by someone who will do their job.”