The CFPB has announced proposed legislative language that would amend Title X of the Dodd-Frank Act and provide authority to establish a whistleblower award program.
Indicating that the move is intended to prevent consumer harm, the bureau said on March 6 that is plans to:
- implement an advisory opinion program to provide guidance to assist companies in better understanding their legal and regulatory obligations through advisory opinions;
- amend and reissue its responsible business conduct bulletin, which articulates that the bureau intends to provide credit to entities for their responsible conduct based on its extent and significance; and
- engage with Congress to advance proposed legislation that would authorize the bureau to award whistleblowers who report violations of Federal consumer financial law.
“These steps reinforce the Bureau’s commitment to preventing consumer harm,” said CFPB Director Kathleen L. Kraninger. “Advisory opinions will ensure that companies know what compliance entails and what constitutes a violation. We also want to incentivize whistleblowers to contact us if they believe their employer is not complying with the law.”
The bureau submitted the proposed legislative language to U.S. House Speaker Nancy Pelosi and U.S. Senate President Michael Pence, as well as the chairmen and ranking members of the authorizing committees in both chambers.