Mulvaney Undermines Student Loan Protections

Mulvaney has continually worked to dismantle the Consumer Financial Protection Bureau and undermine consumer protections — student borrowers are his latest victim.


Today, Mulvaney's CFPB took action to undercut the bureau's student loan investigation division, sparking fears that the move will sidetrack a major enforcement case the bureau has been pursuing.


New York Times: “Mick Mulvaney, the interim director of the Consumer Financial Protection Bureau, will move the agency’s student loan investigation division into the bureau’s consumer information unit, a shift that career officials fear will sidetrack a major enforcement case the agency is pursuing against Navient, the nation’s largest private student lender.”


Mulvaney's CFPB has repeatedly taken steps to scale back consumer protections and resources for student loans.


American Banker: “The CFPB also is looking at whether it should eliminate certain financial education programs or at least minimize duplication with work performed by other federal, state, and local agencies … The CFPB's current financial education programs focus on information in its web site and print publications about mortgages, credit reporting, student loans, debt collection and bank accounts. The agency also has created guides for buying a house, paying for college and planning for retirement.”


CNN: “For years, the government has operated a database of complaints about banks, mortgage lenders and student-loan service providers. But you might not be able to look through it much longer. Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, said Tuesday that he doesn't want to keep the contents of the database open to the general public. ‘I don't see anything in here that says I have to run a Yelp for financial services sponsored by the federal government,’ Mulvaney said at a banking industry confidence, with a copy of the 2010 Dodd-Frank legislation that established the CFPB in hand.”