CFPB Hires New Student Loan Ombudsman
Last week, the Consumer Financial Protection Bureau (CFPB) named Robert G. Cameron as its new private education loan ombudsman, drawing criticism from Congresswoman Maxine Waters, chair of the House Financial Services Committee.
According to the CFPB, the “ombudsman is responsible for receiving, reviewing, and attempting to resolve complaints from private student loan borrowers. The ombudsman is also responsible for compiling and analyzing complaint data on private education loans and making appropriate recommendations” to the Departments of Education and Treasury, the CFPB, and Congress.
Prior to his appointment, Cameron was a Colonel and Staff Judge Advocate for the Pennsylvania Army National Guard. He was also in a leadership role at Pennsylvania’s Higher Education Assistance Agency, which has drawn criticism from Congresswoman Waters.
The Higher Education Assistance Agency in Pennsylvania “has faced a myriad of legal challenges, along with criticism by the Education Department’s Inspector General and the CFPB for its shoddy work that harmed student borrowers,” said Congresswoman Waters. “I am deeply concerned by this new appointment made by Treasury Secretary Mnuchin, in consultation with Director Kraninger, and will continue to conduct rigorous oversight of the CFPB to ensure it is fulfilling its duties to protect our nation’s borrowers from unlawful student loan servicing practices.”
The House Financial Services Committee will hold a hearing on September 10 entitled, “A $1.5 Trillion Crisis: Protecting Student Borrowers and Holding Student Loan Servicers Accountable.” The Committee has not announced who will be testifying, but it is likely that Cameron will be a topic of discussion.