Consumer Financial Protection Bureau Acting Director Mick Mulvaney said Wednesday that an agency office that's been involved in investigating student loan abuses is being merged into another office focused on educating consumers, a move that consumer advocates are comparing to "shuttering the fire department in the middle of a three-alarm fire."

In an email sent to CFPB staff, Mulvaney announced that the Office of Students and Young Consumers "will be folded into" the Office of Financial Education. The move is one of a slew of organizational changes that Mulvaney listed briefly in the email, describing them as part of his effort "to make the bureau more efficient, effective, and accountable."

Alan Kaplinsky, co-practice leader of Ballard Spahr's consumer financial services group, said he also doesn't view the reorganization as "that big a deal."

"It does not mean the CFPB has decided they're no longer going to investigate and enforce the laws against companies that are making student loans or servicing loans," Kaplinsky told Law360. "That's still part of the mandate and I think they'll continue to do that."

Read the full article here. Subscription may be required.