Author: Zack Friedman / Source: Forbes
The nation’s top consumer finance watchdog meant to help you with your student loans is getting another makeover.
Here’s what you need to know.
Major Plan To Weaken or Minor Organizational Change?
According to a new memo from Mick Mulvaney, acting director of the Consumer Financial Protection Bureau (CFPB), the CFPB will eliminate its student loan office and combine with a financial education office.
Some view the move as another example of weakening the consumer finance watchdog.
The concern among Democratic lawmakers and other consumer advocates is that this represents a deliberate weakening of the primary office in the federal government charged with protecting student loan borrowers from predatory practices. By combining the office with a financial education office, they argue, the oversight and regulatory component vanishes.
The Office For Students and Young Consumers traditionally has reviewed consumer complaints, interacted with state attorneys general and recommended policy and regulations to protect consumers.
The office has also returned more than $750 million to student loan borrowers from companies who allegedly wronged them.
The CFPB said the organizational change was immaterial, and is part of Mulvaney’s plan to save taxpayers money and reduce bureaucracy.
So, if you have a student loan…
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