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The Consumer Financial Protection Bureau, or CFPB announced several ways that whistleblowers can alert the Bureau to potential violations of federal consumer financial laws.  But they are not offering huge rewards, like the SEC and CFTC whistleblower programs.

The whistleblower channels announced include an email address, and a toll free “tips hotline.”   Early next year, the Bureau plans to introduce an online tips portal accessible through its website. People who submit tips through any of these channels may request confidentiality or even remain anonymous to the extent permitted by law, although providing contact information may assist the Bureau in investigating and remediating potential violations of federal consumer financial laws.

The Dodd-Frank Wall Street Reform and Consumer Financial Protection Act provides certain anti-retaliation protections for employees of providers of consumer financial products and services who share information regarding potential violations. Employees protected by the statute may not be terminated or discriminated against for:

  • providing information to the employer, the Bureau, or any other state, local, or federal government authority or law enforcement agency relating to a violation of federal consumer financial law;
  • testifying about a potential violation;
  • filing any lawsuit or other proceeding under any federal consumer financial law; or
  • objecting to or refusing to participate in violations of federal consumer financial laws.

Check dodd-frank.com frequently for updates on the Dodd-Frank Act and other important securities law matters.

 

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