A bill has been introduced in the Senate that would reward whistleblowers for reporting wrongdoing to the Consumer Financial Protection Bureau with as much as 30% of a settlement award or up to $50,000 if the settlement is less than $1 million.
S.2775 was introduced earlier this week by Sen. Catherine Cortez Masto [D-Nev.], and has six cosponsors, including Sen. Sherrod Brown [D-Ohio], the chair of the Senate Banking Committee, and Sen Elizabeth Warren [D-Mass.].
Individuals, who can remain anonymous and retain private counsel, reporting wrongdoing or instances of consumer fraud to the CFPB would be eligible for financial compensation.
“Whistleblowers play a vital role in protecting consumers from exploitation, risking their careers and livelihoods to report corrupt and unethical business practices,” said Sen. Cortez Masto, in a statement. “Protecting consumers from fraud has been a top priority for me throughout my career, and we’ve got to do more to help vulnerable Nevadans. This legislation will not only make it safer for whistleblowers to report wrongdoing, it will also protect Nevada consumers from bad actors and discourage future misconduct by holding companies accountable.”
Whistleblowers would be rewarded with between 10% and 30% of a settlement, with the funds coming from the CFPB’s Civil Penalty Fund. In cases where the fine is less than $1 million, the CFPB will pay out 10% of the amount collected or $50,000, whichever is greater.
The full text of the bill was not yet available, and it was not immediately clear how whistleblowers would actually report wrongdoing to the CFPB. Sen. Cortez Masto noted in a release announcing the bill that financial rewards often provide sufficient incentives to people to come forward.
