U.S. Senator Catherine Cortez Masto (D-Nev.) recently introduced a bill in the Senate to authorize the Consumer Financial Protection Bureau (CFPB) to award financial compensation to whistleblowers who report wrongdoing to the CFPB.
The Financial Compensation for CFPB Whistleblowers Act would encourage reporting by allowing the CFPB to reward whistleblowers financial compensation from the Civil Penalty Fund. The legislation would also allow whistleblowers to retain independent counsel and protect a whistleblower’s identity. In addition, it would ensure that pre-dispute arbitration agreements wouldn’t prevent a whistleblower from contacting the CFPB with a concern.
The bill is cosponsored by Sens. Sherrod Brown (D-Ohio), Richard Blumenthal (D-Conn.), Elizabeth Warren (D-Mass.), Tina Smith (D-Minn.), Dick Durbin (D-Ill.), Jeff Merkley (D-Ore.), and Bernard Sanders (I-VT). Congressman Al Green (D-Texas) introduced companion legislation in the House of Representatives.
“Whistleblowers play a critical role by reporting wrongdoing and fraud schemes targeting our communities,” Masto said in a press release. She believes that the bill will protect these individuals and make it easier for them to come forward.
Green noted that “recent bank failures and volatility in our financial system have reaffirmed the importance of transparency and accountability in our economy.” He said the legislation would create a “powerful reward program that will help the CFPB uncover malpractice and reward those who come forward with evidence of fraud.”
If you are considering filing a whistleblower claim, please fill out our online form or contact us by phone at (267) 551-5240 or via e-mail at zarbitman@feldmanshepherd.com for a free, confidential consultation.