119-s2429

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2429 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2429

 To amend the Consumer Financial Protection Act of 2010 to ensure the 
 Bureau of Consumer Financial Protection retains adequate resources to 
 ensure fair, transparent, and competitive markets for financial 
 products and services for consumers and to provide for whistleblower 
 incentives and protection.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 24, 2025

 Ms. Cortez Masto (for herself, Ms. Warren, Mr. Schumer, Mr. Reed, Ms. 
 Smith, Mr. Van Hollen, Mr. Kim, Mr. Gallego, Ms. Alsobrooks, Mr. 
Durbin, Mr. Blumenthal, Ms. Klobuchar, Mr. Merkley, Mr. Whitehouse, Mr. 
 Sanders, Mrs. Gillibrand, Mr. Fetterman, Mr. Booker, Ms. Rosen, Mr. 
 Welch, Mr. Lujan, Mr. Hickenlooper, and Mr. Warnock) introduced the 
 following bill; which was read twice and referred to the Committee on 
 Banking, Housing, and Urban Affairs

_______________________________________________________________________

 A BILL

 To amend the Consumer Financial Protection Act of 2010 to ensure the 
 Bureau of Consumer Financial Protection retains adequate resources to 
 ensure fair, transparent, and competitive markets for financial 
 products and services for consumers and to provide for whistleblower 
 incentives and protection.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Stop the Scammers Act''.

SEC. 2. BUREAU WHISTLEBLOWER INCENTIVES AND PROTECTION.

    (a) In General.--The Consumer Financial Protection Act of 2010 (12 
U.S.C. 5481 et seq.) is amended by inserting after 

section 1017 the 
following:

``

SEC. 1017A. WHISTLEBLOWER INCENTIVES AND PROTECTION.

 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Administrative proceeding or court action.--The term 
 `administrative proceeding or court action' means any judicial 
 or administrative action brought by the Bureau that results in 
 monetary sanctions exceeding $1,000,000.
 ``

    (2) Fund.--The term `Fund' means the Consumer Financial 
 Civil Penalty Fund established under 

section 1017
            (d) (1) .
 ``

    (3) Monetary sanctions.--The term `monetary sanctions' 
 means, with respect to any administrative proceeding or court 
 action, any monies, including penalties, disgorgement, 
 restitution, interest, ordered to be paid or other amounts of 
 relief obtained under 

section 1055

    (a)

    (2) .
 ``

    (4) Original information.--The term `original 
 information' means information that--
 ``
        (A) is derived from the independent knowledge or 
 analysis of a whistleblower;
 ``
        (B) is not known to the Bureau from any other 
 source, unless the whistleblower is the original source 
 of the information;
 ``
            (C) is not exclusively derived from an allegation 
 made in a judicial or administrative hearing, in a 
 governmental report, hearing, or from the news media, 
 unless the whistleblower is a source of the 
 information; and
 ``
            (D) is not exclusively derived from an allegation 
 made in an audit, examination, or investigation.
 ``

    (5) Successful enforcement.--The term `successful 
 enforcement' includes, with respect to any administrative 
 proceeding or court action brought by the Bureau, any 
 settlement of such proceeding or action.
 ``

    (6) Whistleblower.--The term `whistleblower' means any 
 individual who provides, or 2 or more individuals acting 
 jointly who provide, original information relating to a 
 violation of Federal consumer financial law, consistent with 
 any rule or regulation issued by the Bureau under this section.
 ``

    (b) Awards.--
 ``

    (1) In general.--In any administrative proceeding or 
 court action the Bureau, subject to regulations prescribed by 
 the Bureau and subject to subsection
            (c) , shall pay an award or 
 awards to 1 or more whistleblowers who voluntarily provided 
 original information that led to the successful enforcement of 
 the covered administrative proceeding or court action in an 
 aggregate amount equal to--
 ``
        (A) not less than 10 percent, in total, of the 
 civil money penalties collected by the Bureau in the 
 action; and
 ``
        (B) not more than 30 percent, in total, of the 
 civil money penalties collected by the Bureau in the 
 action.
 ``

    (2) Payment of awards.--Any amount paid under paragraph

    (1) shall be paid from the Fund.
 ``

    (3) Award minimum.--If the Bureau collects less than 
 $1,000,000 in civil money penalties in the action, the Bureau 
 shall provide for an award to any single whistleblower equal to 
 the greater of--
 ``
        (A) 10 percent of the civil money penalties 
 collected; or
 ``
        (B) $50,000.
 ``
            (c) Determination of Amount of Award; Denial of Award.--
 ``

    (1) Determination of amount of award.--
 ``
        (A) Discretion.--The determination of the 
 percentage amount of an award made under subsection

    (b) shall be in the discretion of the Bureau.
 ``
        (B) Criteria.--In determining the percentage 
 amount of an award made under subsection

    (b) , the 
 Bureau shall take into consideration--
 ``
            (i) the significance of the information 
 provided by the whistleblower to the successful 
 enforcement of the administrative proceeding or 
 court action;
 ``
            (ii) the degree of assistance provided by 
 the whistleblower and any legal representative 
 of the whistleblower in an administrative 
 proceeding or court action;
 ``
            (iii) the programmatic interest of the 
 Bureau in deterring violations of Federal 
 consumer financial law (including applicable 
 regulations) by making awards to whistleblowers 
 who provide information that leads to the 
 successful enforcement of such laws; and
 ``
            (iv) such additional relevant factors as 
 the Bureau may establish by rule or regulation, 
 including the amount available in the Fund.
 ``

    (2) Denial of award.--No award under subsection

    (b) shall 
 be made--
 ``
        (A) to any whistleblower who is, or was at the 
 time the whistleblower acquired the original 
 information submitted to the Bureau, a member, officer, 
 or employee of an entity described in subclauses
            (I) through
            (V) of subsection

    (h)

    (1)
            (C) 
            (i) ;
 ``
        (B) to any whistleblower who is convicted of a 
 criminal violation related to the administrative 
 proceeding or court action for which the whistleblower 
 otherwise could receive an award under this section;
 ``
            (C) to any whistleblower who is found to be 
 liable for the conduct in the administrative proceeding 
 or court action, or a related action, for which the 
 whistleblower otherwise could receive an award under 
 this section;
 ``
            (D) to any whistleblower who planned and 
 initiated the conduct at issue in the administrative 
 proceeding or court action for which the whistleblower 
 otherwise could receive an award under this section;
 ``
        (E) to any whistleblower who submits information 
 to the Bureau that is based on the facts underlying the 
 administrative proceeding or court action previously 
 submitted by another whistleblower; and
 ``
        (F) to any whistleblower who fails to submit 
 information to the Bureau in such form as the Bureau 
 may, by rule or regulation, require.
 ``
            (d) Representation.--
 ``

    (1) Permitted representation.--Any whistleblower who 
 makes a claim for an award under subsection

    (b) may be 
 represented by counsel.
 ``

    (2) Required representation.--
 ``
        (A) In general.--Any whistleblower who 
 anonymously makes a claim for an award under subsection

    (b) shall be represented by counsel if the 
 whistleblower submits the information upon which the 
 claim is based.
 ``
        (B) Disclosure of identity.--Prior to the payment 
 of an award, a whistleblower shall disclose the 
 identity of the whistleblower and provide such other 
 information as the Bureau may require, directly or 
 through counsel of the whistleblower.
 ``

    (e) No Contract Necessary.--No contract or other agreement with 
the Bureau is necessary for any whistleblower to receive an award under 
subsection

    (b) , unless otherwise required by the Bureau by rule or 
regulation.
 ``

    (f) Appeals.--
 ``

    (1) In general.--Any determination made under this 
 section, including whether, to whom, or in what amount to make 
 awards, shall be in the discretion of the Bureau. Any such 
 determination, except the determination of the amount of an 
 award if the award was made in accordance with subsection

    (b) , 
 may be appealed to the appropriate court of appeals of the 
 United States not more than 30 days after the determination is 
 issued by the Bureau.
 ``

    (2) Scope of review.--The court shall review the 
 determination made by the Bureau in accordance with 

section 706 
 of title 5, United States Code.
 ``

    (g) Reports to Congress.--Not later than December 31 of each 
year, the Bureau shall transmit to the House Committee on Financial 
Services and the Senate Committee on Banking, Housing, and Urban 
Affairs a report on the Bureau's whistleblower award program under this 
section, including a description of the number of awards granted and 
the types of cases in which awards were granted during the preceding 
fiscal year.
 ``

    (h) Protection of Whistleblowers.--
 ``

    (1) Confidentiality.--
 ``
        (A) In general.--Except as provided in 
 subparagraphs
        (B) and
            (C) , the Bureau and any officer 
 or employee of the Bureau, shall not disclose any 
 information, including information provided by a 
 whistleblower to the Bureau, which could reasonably be 
 expected to reveal the identity of a whistleblower, 
 except in accordance with the provisions of 

section 552a of title 5, United States Code, unless and until 
 required to be disclosed to a defendant or respondent 
 in connection with a public proceeding instituted by 
 the Bureau or any entity described in subparagraph
            (C) . 
 For purposes of 

section 552 of title 5, United States 
 Code, this paragraph shall be considered a statute 
 described in subsection

    (b)

    (3)
        (B) of such 

section 552.
 ``
        (B) Effect.--Nothing in this paragraph is 
 intended to limit the ability of the Attorney General 
 to present such evidence to a grand jury or to share 
 such evidence with potential witnesses or defendants in 
 the course of an ongoing criminal investigation.
 ``
            (C) Availability to government agencies.--
 ``
            (i) In general.--Without the loss of its 
 status as confidential in the hands of the 
 Bureau, all information referred to in 
 subparagraph
        (A) may, in the discretion of the 
 Bureau, when determined by the Bureau to be 
 necessary or appropriate, be made available 
 to--
 ``
            (I) the Department of Justice;
 ``
            (II) an appropriate department or 
 agency of the Federal Government, 
 acting within the scope of its 
 jurisdiction;
 ``
            (III) a State attorney general in 
 connection with any criminal 
 investigation;
 ``
            (IV) an appropriate department or 
 agency of any State, acting within the 
 scope of its jurisdiction; and
 ``
            (V) a foreign regulatory 
 authority.
 ``
            (ii) Maintenance of information.--Each of 
 the entities, agencies, or persons described in 
 clause
            (i) shall maintain information described 
 in that clause as confidential, in accordance 
 with the requirements in subparagraph
        (A) .
 ``

    (2) Rights retained.--Nothing in this section shall be 
 deemed to diminish the rights, privileges, or remedies of any 
 whistleblower under 

section 1057, any other Federal or State 
 law, or under any collective bargaining agreement.
 ``
            (i) Rulemaking Authority.--The Bureau shall have the authority to 
issue such rules and regulations as may be necessary or appropriate to 
implement the provisions of this section consistent with the purposes 
of this section.
 ``

    (j) Original Information.--Information submitted to the Bureau by 
a whistleblower in accordance with rules or regulations implementing 
this section shall not lose its status as original information solely 
because the whistleblower submitted such information prior to the 
effective date of such rules or regulations, provided such information 
was submitted after the date of enactment of this section.
 ``

    (k) Provision of False Information.--A whistleblower who 
knowingly and willfully makes any false, fictitious, or fraudulent 
statement or representation, or who makes or uses any false writing or 
document knowing the same to contain any false, fictitious, or 
fraudulent statement or entry, shall not be entitled to an award under 
this section and shall be subject to prosecution under 

section 1001 of 
title 18, United States Code.
 ``
            (l) Unenforceability of Certain Agreements.--
 ``

    (1) No waiver of rights and remedies.--Except as provided 
 under paragraph

    (3) , and notwithstanding any other provision of 
 law, the rights and remedies provided for in this section may 
 not be waived by any agreement, policy, form, or condition of 
 employment, including by any predispute arbitration agreement.
 ``

    (2) No predispute arbitration agreements.--Except as 
 provided under paragraph

    (3) , and notwithstanding any other 
 provision of law, no predispute arbitration agreement shall be 
 valid or enforceable to the extent that the agreement requires 
 arbitration of a dispute arising under this section.
 ``

    (3) Exception.--Notwithstanding paragraphs

    (1) and

    (2) , 
 an arbitration provision in a collective bargaining agreement 
 shall be enforceable as to disputes arising under this section, 
 unless the Bureau determines, by rule, that such provision is 
 inconsistent with the purposes of this title.''.

    (b) Consumer Financial Civil Penalty Fund.--

Section 1017
            (d) (2) of 
the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497
            (d) (2) ) is 
amended, in the first sentence, by inserting ``and for awards 
authorized under 

section 1017A'' before the period at the end.

SEC. 3. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL PROTECTION.

 

Section 1017

    (a)

    (2)
        (A)
            (iii) of the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5497

    (a)

    (2)
        (A)
            (iii) ) is amended by striking ``6.5'' 
and inserting ``12''.
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