The Financial Compensation for CFPB Whistleblowers Act, a bill pending in Congress, would set up a whistleblower award program at the Consumer Financial Protection Bureau (CFPB). In a new article for Law360, leading whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto urges Congress to pass the bill in order to protect American consumers.
“A whistleblower program covering violations of the CFPA would protect the public from insurance fraud, credit fraud, investment fraud, identity theft, mortgage fraud and other consumer fraud schemes, which all too often go unchecked,” writes Kohn.
The Financial Compensation for CFPB Whistleblowers Act was introduced in March by Senator Catherine Cortez Masto (D-NV) and Representative Al Green (D-TX). It is modeled off the whistleblower award provisions Dodd-Frank Act which established the whistleblower program of the Securities Exchange Commission (SEC).
“The CFPB Whistleblowers Act virtually copies the Dodd-Frank whistleblower framework, recognizing it has been extraordinarily successful in the fight against investor fraud,” Kohn explains. “In fact, the SEC’s whistleblower program is generally considered the gold standard of whistleblower award programs globally.”
“Whistleblower award programs are a proven cornerstone to fighting fraud,” Kohn concludes. “We are using the full force of the law to protect investors. Don’t consumers deserve the same?”
According to Kohn’s article, Representative Green said to the National Whistleblower Center, “[t]he Consumer Financial Protection Bureau is a critical watchdog of our financial system, one that has already returned billions of dollars to consumers who have been harmed by financial bad actors.”
“Whistleblowers play a critical role by reporting wrongdoing and fraud schemes targeting our communities,” Cortez Masto further explained to the National Whistleblower Center. “This legislation will protect these individuals, making it easier for them to come forward.”