A group of lawmakers recently reintroduced a bill they said seeks to provide financial compensation to whistleblowers who report
Consumer Financial Protection Bureau (CFPB) offenses.
U.S. Sen. Catherine Cortez Masto (D-NV) co-sponsored the measure with U.S. Sens. Sherrod Brown (D-OH), Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), Tina Smith (D-MN), Dick Durbin (D-IL), Jeff Merkley (D-OR), and Bernie Sanders (I-VT).
Specifically, the legislation would encourage reporting by enabling the CFPB to provide whistleblowers with financial compensation via the Civil Penalty Fund while also allowing them to retain independent counsel and protect their identity.
“Whistleblowers play a critical role by reporting wrongdoing and fraud schemes targeting our communities,” Cortez Masto said. “This legislation will protect these individuals, making it easier for them to come forward and for us to go after anyone taking advantage of vulnerable Nevadans.”
Bill proponents indicated it would also ensure pre-dispute arbitration agreements would not prevent a whistleblower from contacting the CFPB with a concern.
“Whistleblowers are essential to our democracy,” said Brown, Senate Committee on Banking, Housing, and Urban Affairs chairman. “Whistleblowers risk their career and their reputation to reveal corruption and bad actors seeking to exploit consumers and our government. We must do more to protect whistleblowers so they feel safe coming forward to expose corporate malfeasance. This legislation does just that by protecting whistleblowers from retaliation and incentivizing them to come forward with their information.”
U.S. Rep. Al Green (D-TX) has introduced companion legislation in the House of Representatives.
“The recent bank failures and volatility in our financial system have reaffirmed the importance of transparency and accountability in our economy,” Green said. “This legislation would create a powerful reward program that will help the CFPB uncover malpractice and reward those who come forward with evidence of fraud.”