Protesters gathered in front of the Bureau of Consumer Financial Protection yesterday, as they sought to voice their opposition to an announced change that critics of the move are saying will weaken the agency’s regulation over student loan lenders and collectors.
The CFPB issued a statement yesterday that attempted to downplay the decision to move the agency’s student loan to the department that focuses on consumer engagement and education.
“We know that this is a step in exactly the wrong direction,” Marceline White, executive director of the Maryland Consumer Rights Coalition, said at Thursday’s protest, according to The Washington Post. “This shows the intent of the agency to roll back protections of consumers, while instead protecting debt collectors and predatory student loan servicers.”
Along with the protestors, many lawmakers — most of them Democrats — spoke out against the changes announced by Mick Mulvaney, the acting director of the CFPB.
“Call it what you want: shutting down, reorganizing, downsizing, rightsizing. Coming from Mr. Mulvaney’s office, it’s of little comfort to students and families who know the Trump Administration is not on their side,” Sen. Richard J. Durbin [D-Ill.] said in an email to The Washington Post.
A spokesman for the CFPB said the move was nothing more than a “modest organizational change.”
“Contrary to malicious rumors and misinformation being spread elsewhere, the Bureau of Consumer Financial Protection is not shutting down its efforts to protect and inform students,” agency spokesman John Czwartacki said in a statement.
He added: “The office in question is not being shuttered, its work continues, personnel are all on the job and working on the same material as they were before. There is a very modest organizational chart change to keep the Bureau in line with the statute but the office is still operating within the same division. The bottom line is there is no functional or even practical change.”
Consumer advocates said the move should make it clear to consumers that they “are on their own” when fighting predatory tactics by lenders and debt collectors.
