Stop the Scammers Act

The Stop the Scammers Act would overhaul the Consumer Financial Protection Act of 2010 to (1) establish a formal whistleblower incentive and protection program within the Bureau of Consumer Financial Protection (CFPB), funded from the agency’s civil penalty fund, (2) raise the CFPB’s funding cap to ensure adequate resources for enforcement, and (3) clarify that whistleblower information can be used to support enforcement while preserving confidentiality and imposing certain disqualifications. The core idea is to reward individuals who provide original information that leads to successful enforcement of federal consumer financial laws, and to strengthen the CFPB’s ability to obtain and deploy resources to deter and punish misconduct in financial markets. Key elements include a defined framework for awards (size, eligibility, and how awards are determined), protections for whistleblowers (confidentiality, representation, and protection from coercive agreements), and rules to limit arbitration and contractual waivers for claims under this program. The bill also requires annual reporting on the whistleblower program and expands the funding mechanism to cover awards and the agency’s enforcement activities.