CFPB Whistleblower Reward Information
Learn About the Options for Seeking a Whistleblower Reward When Reporting Consumer Financial Protection Violations
While the Consumer Financial Protection Bureau (CFPB) protects whistleblowers who report violations of the Consumer Financial Protection Act and other federal consumer financial laws, it does not currently have a whistleblower reward program. As a result, prospective whistleblowers who are considering contacting the CFPB may also want to consider coming forward through other means.
Although the CFPB does not have a whistleblower reward program, whistleblowers who are prepared to disclose violations of federal consumer financial protection laws may be able to establish their reward eligibility by contacting a different federal agency. As discussed in greater detail below, several federal agencies have whistleblower reward programs—and many of these agencies accept complaints that can also be filed with the CFPB.
Whistleblower Rewards for Reporting Violations of Consumer Financial Protection Laws
Whistleblowers who are prepared to report violations of federal consumer financial protection laws may be able to contact a variety of other federal agencies instead of contacting the CFPB. Depending on the specific violation (or violations) a whistleblower is prepared to disclose, alternate options for coming forward may include:
CFTC Whistleblower Reward Program
The Commodity Futures Trading Commission (CFTC) accepts whistleblower complaints involving violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and various other federal laws and regulations that apply to consumer financial products. Under the CFTC’s whistleblower reward program, individuals who help the CFTC pursue successful enforcement actions involving financial products or services are generally entitled to between 10% and 30% of the monetary sanctions recovered.
DOJ Whistleblower Reward Programs
The U.S. Department of Justice (DOJ) administers multiple whistleblower programs that include provisions for financial rewards. The DOJ is the nation’s top law enforcement agency; and, while it has substantial resources at its disposal, it still relies heavily on current employees, former employees, and other individuals to expose violations of federal laws such as the Fair Credit Reporting Act, Electronic Fund Transfer Act, and Home Mortgage Disclosure Act.
While these laws (among others) fall within the CFPB’s jurisdiction, the DOJ has enforcement authority in these areas as well—and the DOJ can pursue both civil and criminal enforcement as warranted. The DOJ can also pursue charges for Bank Secrecy Act (BSA) violations and wire fraud, among other federal offenses.
False Claims Act (FCA) Rewards
The federal False Claims Act (FCA) prohibits companies that receive federal funding from submitting false and fraudulent claims to the government. This means that whistleblowers who have information about fraud and other offenses perpetrated by federally insured banks (among other entities) can file complaints under the FCA in some cases.
Reporting information about a violation of the FCA involves filing a qui tam lawsuit in federal court. As with all types of whistleblower complaints, if you are eligible to file a qui tam lawsuit, it will be important to do so in a timely manner. Under the FCA, the DOJ can award whistleblowers when they provide information about fraudulent or abusive acts that leads to a successful enforcement action. FCA whistleblower rewards generally range from 15% to 30% of the amount the government recovers.
Financial Institutions Anti-Fraud Enforcement Act (FIAFEA) Rewards
The Financial Institutions Anti-Fraud Enforcement Act (FIAFEA) prohibits money laundering, wire fraud, and other forms of fraud within the financial services industry. The DOJ is responsible for enforcing the FIAFEA, and the US attorney general can pursue charges against banks, check cashing businesses, and other employers. If you have information about potential violations of the FIAFEA, you could be eligible to seek a whistleblower reward between $200,000 and $1.6 million.
FinCEN Whistleblower Reward Program
The Financial Crimes Enforcement Network (FinCEN) accepts whistleblower complaints involving anti-money laundering (AML) violations and other offenses perpetrated by employers ranging from small businesses to large financial institutions. It is authorized to issue whistleblower rewards in appropriate cases, and FinCEN whistleblower rewards generally range from 10% to 30% of the amount recovered.
SEC Whistleblower Reward Program
The Securities and Exchange Commission (SEC) accepts whistleblower complaints involving various forms of consumer financial fraud as well. Covered employees and other individuals who file whistleblower complaints with the SEC in cases involving deceptive advertising, misrepresentations and omissions, and other statutory and regulatory actions may also be entitled to monetary awards ranging from 10% to 30% of the amount recovered.
Securing a Whistleblower Reward Requires a Successful Enforcement Action
In all cases, securing a whistleblower reward requires a successful enforcement action. When we represent clients in consumer financial protection whistleblower cases, we work closely with the relevant federal authorities to help maximize our clients’ chances of securing a monetary reward. As your authorized representative, we will work directly with the relevant federal authorities on your behalf, and we will remain in close contact with you throughout the process.
Some examples of violations we may be able to help you report as a whistleblower (whether to the CFPB or another federal agency) include:
- Discrimination related to loan approvals, interest rates, or other consumer financial matters
- Misrepresenting mortgage failure rates or other material information
- Failing to disclose accurate mortgage loan application data
- Making false or misleading disclosures based on incomplete data sets
- Foreclosure relief scams and other fraudulent schemes targeting consumers
Again, these are just examples. If you believe that you have (or may have) information about any potential law violations negatively impacting consumers or investors, we strongly encourage you to get in touch. Our attorneys can determine if you are eligible to come forward as a whistleblower; and, if you are, we can help you make an informed decision about where to file your whistleblower complaint.
FAQs: Whistleblower Rewards for Reporting Consumer Financial Protection Violations
Does the CFPB Accept Whistleblower Complaints Involving Anti-Money Laundering (AML) Violations?
The CFPB accepts whistleblower complaints involving anti-money laundering (AML) violations in certain circumstances. However, other federal authorities (i.e., the DOJ and FinCEN) accept whistleblower complaints involving AML violations as well; and, while the CFPB does not currently have a whistleblower reward program, individuals who come forward to these other agencies may be eligible to secure monetary awards.
Does the CFPB Accept Whistleblower Complaints Involving Investor Fraud?
In most cases, reporting investor fraud as a whistleblower will involve contacting the CFTC or SEC instead of the CFPB. The CFTC and SEC both have whistleblower reward programs, and these agencies are responsible for issuing many of the largest whistleblower rewards in US history. If you have original information about investor fraud, our whistleblower attorneys can guide you through the process of coming forward through the most appropriate means.
How Can I Seek a Reward for Reporting a Consumer Financial Protection Violation to the Federal Government?
Since the CFPB does not currently have a whistleblower reward program, seeking a reward for reporting a consumer protection violation generally involves filing a complaint with the CFTC, FinCEN, DOJ, or SEC. The specific agency you should contact depends on the specific information you have in your possession. Our whistleblower attorneys can guide you forward.
Are Whistleblowers Who Are Eligible for Monetary Awards Also Entitled to Anti-Retaliation Protections?
Yes, regardless of whether you are eligible for a monetary award, you are entitled to protection against any and all forms of adverse employment action if you come forward as a federal whistleblower. Serving as a whistleblower is a protected activity under federal law, and this means that employers cannot retaliate against employees who blow the whistle.
It is also important to keep in mind that federal whistleblowers are entitled to strict confidentiality protections as well. In addition to anti-retaliation provisions, federal whistleblower statutes also include provisions that require federal agencies to protect whistleblowers’ identities. As a result, employers will not be able to discern whistleblowers’ identities in most cases.
What Should I Do if I Am Interested in Serving as a CFPB Whistleblower?
If you are interested in serving as a CFPB whistleblower, you should consult with an experienced federal whistleblower attorney promptly. Again, since it is not possible to seek a CFPB whistleblower reward (though the CFPB does protect whistleblowers’ identities), it will be worth discussing your other options with your attorney as well. Our attorneys represent whistleblowers under all federal whistleblower programs, and we rely on extensive experience (including prior DOJ experience) to communicate effectively with federal authorities on behalf of our clients.
As a prospective whistleblower, you should not have to pay anything out-of-pocket for your legal representation. This is true regardless of whether you ultimately decide to come forward. Our attorneys represent whistleblowers on a contingency-fee basis, which means our legal fees (if any) are calculated as a percentage of the whistleblower rewards we help our clients recover.
Discuss Your Legal Options with an Experienced Federal Whistleblower Attorney in Confidence
If you would like to speak with one of our experienced federal whistleblower attorneys about coming forward, contact us to arrange a free, no-obligation consultation today. Call 888-680-1745 or request an appointment online to speak with an attorney in strict confidence as soon as possible.