The Ombuds Blog: U.S. Student Loan Ombuds Quits in Disgust

August 29, 2018

U.S. Student Loan Ombuds Quits in Disgust

This week, Seth Frotman, the Student Loan Ombudsman for the U.S. Consumer Financial Protection Bureau resigned his post. In a letter copied to two cabinet members and several members of Congress, Frotman scorched the Acting Director, Mick Mulvaney, saying that “the Bureau has abandoned the very consumers it is tasked by Congress with protecting” and instead now serve the wishes of powerful financial companies.

The letter was the last act of a bureaucrat who took seriously the ethical mandate of his position as the watchdog for student borrowers. In May, the Student Loan Ombudsman program was moved from the bureau's enforcement into its financial education office and lost much of its power. The future of the Student Loan Ombudsman and Frotman are unclear. (Washington Post; Frotman Letter via NPR.)

Related post: ACUS Finalizes Recommendation on Use of Ombuds in Federal Agencies; Federal Student Loan Ombuds Program Survives CFPB Reorganization.

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Organizational Ombuds

Organizational Ombuds serve as a confidential, independent, neutral and informal dispute resolution resource for a specific entity. They are accessible to a defined population and can advocate for fairness. These unique characteristics distinguish Organizational Ombuds from Classical Ombuds, mediators, arbitrators, and other alternative dispute resolution professionals. The term "Ombuds" is shorthand for "Ombudsman," "Ombudsperson" and "Ombuds Officer," which also are used widely.

Some other variants include:

Austria -- Ombudsstelle

Brazil -- Ouvidor

Croatia -- pravobranitelji

France -- médiateur/defénseur

Germany -- Ombudspersonen

Italy -- difensore

Netherlands -- ombudspersoon

Norway -- ombudet

Poland -- Rzecznik

Portugal -- provedor

Russia -- омбудсмен

Spain -- ombudsman organizacional

Sweden -- studentombud

Switzerland -- ombudsmann

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August 29, 2018

U.S. Student Loan Ombuds Quits in Disgust

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