Bill Introduced to Create Whistleblower Program at CFPB

After seeing Democrats introduce legislation in both the House of Representatives and the Senate designed to protect and compensate individuals who come forward and report instances of wrongdoing in the financial services industry to the Consumer Financial Protection Bureau, a Republican has introduced his own bill that aims to protect and compensate employees at the CFPB who want to come forward and expose “conduct within the CFPB that does not serve the American consumer.”

H.R.5714, which would amend the Consumer Financial Protection Act of 2010, was introduced by Rep. Tom Emmer [R-Minn.] yesterday.

“Instead of fear of retribution, retaliation, or financial ruin, whistleblowers should be supported as they come forward and help ensure the Bureau is protecting American consumers,” Rep. Emmer said in a statement. “This legislation is one small step to provide them with reasonable protections and compensation.”

Whistleblowers who come forward and voluntarily provide information that leads to the “successful enforcement” of an administrative proceeding or court action shall be eligible to receive up to 10% of the total amount of monetary sanctions imposed and collected or $50,000.

When issuing a financial award, the Bureau will take certain factors into consideration, including the significance of the information and the degree of assistance provided by the whistleblower. Whistleblowers would also have the opportunity to remain anonymous, should the bill become law.

The CFPB would also be required to issue an annual report to the House Financial Services Committee and the Senate Banking Committee about its whistleblower award program, “including a description of the number of awards granted and the types of cases in which awards were granted during the preceding fiscal year.”

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