The Consumer Financial Protection Bureau's Whistleblower Program: How It Works and What It Means for Financial Services Companies
Bloomberg LawSasha Leonhardt, Kristopher R. Knabe
Whistleblowers are "often the best source of information about waste, fraud, and abuse...." -President Barack Obama
On December 15, 2011, the Consumer Financial Protection Bureau (Bureau or CFPB) issued a bulletin announcing its program to collect whistleblower information and law enforcement tips, stating that is "welcomes information from current or former employees of potential violaters, contractors, vendors, and competitor companies." Through an active outreach campaign, including press releases and public pronouncements, the Bureau has made it clear that obtaining information from whistleblowers will be a central component of its enforcement efforts. Indeed, in the press release accompanying the bulletin, Richard Cordray, current Director of the Bureau and then-Assistant Director of Enforcement, stated: "We are providing whistleblowers and other knowledgeable sources with a direct line of communication to the CFPB.... Their tips will help inform Bureau strategy, investigations, and enforcement. And they will help us fulfill our commitment to consumers."
Published in Bloomberg Law Reports: Banking & Finance. Reprinted with permission.