Washington, D.C. – Today, Congressman Tom Emmer (MN-06) introduced the CFPB Whistleblower Incentives and Protection Act to create a whistleblower program at the Consumer Financial Protection Bureau (CFPB).
Created following passage of the Dodd-Frank Act in 2010, the CFPB was given the power to regulate dozens of industries, including auto lenders, credit unions, community banks, student loan servicers, and more. In its short time as a new regulator, the CFPB has placed burden after burden on the financial services industry, making it harder for the American consumers they are obligated to protect to access the financial products and services they need to thrive.
Whistleblowers have proven to be an effective means of exposing conduct within the CFPB that does not serve the American consumer. This legislation encourages whistleblower reporting by offering compensation and protection to whistleblowers, similar to what is done with other federal agencies and departments. Reports have found that financial rewards provide incentives for potential whistleblowers to come forward.
Specifically, the bill amends Dodd-Frank to provide compensation to whistleblowers and ensure their identities remain confidential. It also requires the CFPB to submit a report to Congress no later than October 30th each year detailing the awards granted to whistleblowers in the previous year.
“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. This legislation is one small step to provide them with reasonable protections and compensation,” said Emmer.
“This common-sense fix would ensure that we fairly reward whistleblowers while also keeping our focus on being good stewards of taxpayer dollars. Our efforts to reform the CFPB should put the American consumer first, and this legislation does that,” Emmer concluded.
Read the text of the CFPB Whistleblower Incentives and Protection Act here.