I 

116TH CONGRESS 

2D SESSION H. R. 7793 

To amend the Consumer Financial Protection Act of 2010 to provide for 

whistleblower incentives and protection. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 27, 2020 

Mr. GREEN of Texas introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Consumer Financial Protection Act of 2010 

to provide for whistleblower incentives and protection. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Compensa5 tion for CFPB Whistleblowers Act’’. 

6 SEC. 2. BUREAU WHISTLEBLOWER INCENTIVES AND PRO7 TECTION. 

8 (a) IN GENERAL.—The Consumer Financial Protec9 tion Act (12 U.S.C. 5481 et seq.) is amended by adding 

10 at the end of section 1017 the following: 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 7793 IH

1 ‘‘SEC. 1017A. WHISTLEBLOWER INCENTIVES AND PROTEC2 TION. 

3 ‘‘(a) DEFINITIONS.—In this section: 

4 ‘‘(1) ADMINISTRATIVE PROCEEDING OR COURT

5 ACTION.—The term ‘administrative proceeding or 

6 court action’ means any judicial or administrative 

7 action brought by the Bureau that results in mone8 tary sanctions greater than or equal to $500,000. 

9 ‘‘(2) FUND.—The term ‘Fund’ means the Con10 sumer Financial Civil Penalty Fund established 

11 under section 1017(d)(1). 

12 ‘‘(3) MONETARY SANCTIONS.—The term ‘mone13 tary sanctions’ means, with respect to any adminis14 trative proceeding or court action, any monies, in15 cluding penalties, disgorgement, restitution, dam16 ages, interest, ordered to be paid or other amounts 

17 of relief obtained under section 1055(a)(2). 

18 ‘‘(4) ORIGINAL INFORMATION.—The term 

19 ‘original information’ means information that— 

20 ‘‘(A) is derived from the independent 

21 knowledge or analysis of a whistleblower; 

22 ‘‘(B) is not known to the Bureau from any 

23 other source, unless the whistleblower is the 

24 original source of the information; 

25 ‘‘(C) is not exclusively derived from an al26 legation made in a judicial or administrative 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 7793 IH

1 hearing, in a governmental report, hearing, or 

2 from the news media, unless the whistleblower 

3 is a source of the information; and 

4 ‘‘(D) is not exclusively derived from an al5 legation made in an audit, examination or in6 vestigation. 

7 ‘‘(5) SUCCESSFUL ENFORCEMENT.—The term 

8 ‘successful enforcement’ includes, with respect to 

9 any administrative proceeding or court action 

10 brought by the Bureau, any settlement of such pro11 ceeding or action. 

12 ‘‘(6) WHISTLEBLOWER.—The term ‘whistle13 blower’ means any individual, or 2 or more individ14 uals acting jointly, who provides original information 

15 relating to a violation of Federal consumer financial 

16 law, consistent with any rule or regulation issued by 

17 the Bureau under this section. 

18 ‘‘(b) AWARDS.— 

19 ‘‘(1) IN GENERAL.—In any administrative pro20 ceeding or court action the Bureau, subject to regu21 lations prescribed by the Bureau and subject to sub22 section (c), shall pay an award or awards to 1 or 

23 more whistleblowers who voluntarily provided origi24 nal information that led to the successful enforceVerDate Sep 11 2014 20:40 Aug 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7793.IH H7793

pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 7793 IH

1 ment of the covered administrative proceeding or 

2 court action in an aggregate amount equal to— 

3 ‘‘(A) not less than 10 percent, in total, of 

4 what has been collected of the monetary sanc5 tions imposed in the action; and 

6 ‘‘(B) not more than 30 percent, in total, of 

7 what has been collected of the monetary sanc8 tions imposed in the action. 

9 ‘‘(2) PAYMENT OF AWARDS.—Any amount paid 

10 under paragraph (1) shall be paid from the Fund. 

11 ‘‘(3) AWARD MINIMUM.—If the Bureau is un12 able to collect at least $1,000,000 of the monetary 

13 sanctions imposed in the action, the Bureau shall 

14 provide for an award to any single whistleblower 

15 equal to the greater of— 

16 ‘‘(A) 10 percent of the amount collected; or 

17 ‘‘(B) $50,000. 

18 ‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DE19 NIAL OF AWARD.— 

20 ‘‘(1) DETERMINATION OF AMOUNT OF

21 AWARD.— 

22 ‘‘(A) DISCRETION.—The determination of 

23 the percentage amount of an award made under 

24 subsection (b) shall be in the discretion of the 

25 Bureau. 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•HR 7793 IH

1 ‘‘(B) CRITERIA.—In determining the per2 centage amount of an award made under sub3 section (b), the Bureau shall take into consider4 ation— 

5 ‘‘(i) the significance of the informa6 tion provided by the whistleblower to the 

7 successful enforcement of the administra8 tive proceeding or court action; 

9 ‘‘(ii) the degree of assistance provided 

10 by the whistleblower and any legal rep11 resentative of the whistleblower in an ad12 ministrative proceeding or court action; 

13 ‘‘(iii) the programmatic interest of the 

14 Bureau in deterring violations of Federal 

15 consumer financial law (including applica16 ble regulations) by making awards to whis17 tleblowers who provide information that 

18 leads to the successful enforcement of such 

19 laws; and 

20 ‘‘(iv) such additional relevant factors 

21 as the Bureau may establish by rule or 

22 regulation, including the amount available 

23 in the Fund for prioritizing restitution to 

24 affected consumers. 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•HR 7793 IH

1 ‘‘(2) DENIAL OF AWARD.—No award under 

2 subsection (b) shall be made— 

3 ‘‘(A) to any whistleblower who is, or was at 

4 the time the whistleblower acquired the original 

5 information submitted to the Bureau, a mem6 ber, officer, or employee of an entity described 

7 in subclauses (I) through (V) of subsection 

8 (h)(1)(C)(i); 

9 ‘‘(B) to any whistleblower who is convicted 

10 of a criminal violation related to the adminis11 trative proceeding or court action for which the 

12 whistleblower otherwise could receive an award 

13 under this section; 

14 ‘‘(C) to any whistleblower who is found to 

15 be liable for the conduct in the administrative 

16 proceeding or court action, or a related action, 

17 for which the whistleblower otherwise could re18 ceive an award under this section; 

19 ‘‘(D) to any whistleblower who planned 

20 and initiated the conduct at issue in the admin21 istrative proceeding or court action for which 

22 the whistleblower otherwise could receive an 

23 award under this section; 

24 ‘‘(E) to any whistleblower who submits in25 formation to the Bureau that is based on the 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•HR 7793 IH

1 facts underlying the administrative proceeding 

2 or court action previously submitted by another 

3 whistleblower; and 

4 ‘‘(F) to any whistleblower who fails to sub5 mit information to the Bureau in such form as 

6 the Bureau may, by rule or regulation, require. 

7 ‘‘(d) REPRESENTATION.— 

8 ‘‘(1) PERMITTED REPRESENTATION.—Any 

9 whistleblower who makes a claim for an award under 

10 subsection (b) may be represented by counsel. 

11 ‘‘(2) REQUIRED REPRESENTATION.— 

12 ‘‘(A) IN GENERAL.—Any whistleblower 

13 who anonymously makes a claim for an award 

14 under subsection (b) shall be represented by 

15 counsel if the whistleblower submits the infor16 mation upon which the claim is based. 

17 ‘‘(B) DISCLOSURE OF IDENTITY.—Prior to 

18 the payment of an award, a whistleblower shall 

19 disclose the identity of the whistleblower and 

20 provide such other information as the Bureau 

21 may require, directly or through counsel of the 

22 whistleblower. 

23 ‘‘(e) NO CONTRACT NECESSARY.—No contract or 

24 other agreement with the Bureau is necessary for any 

25 whistleblower to receive an award under subsection (b), 


pamtmann on DSKBC07HB2PROD with BILLS
8 

•HR 7793 IH

1 unless otherwise required by the Bureau by rule or regula2 tion. 

3 ‘‘(f) APPEALS.—Any determination made under this 

4 section, including whether, to whom, or in what amount 

5 to make awards, shall be in the discretion of the Bureau. 

6 Any such determination, except the determination of the 

7 amount of an award if the award was made in accordance 

8 with subsection (b), may be appealed to the appropriate 

9 court of appeals of the United States not more than 30 

10 days after the determination is issued by the Bureau. The 

11 court shall review the determination made by the Bureau 

12 in accordance with section 706 of title 5. 

13 ‘‘(g) REPORTS TO CONGRESS.—Not later than Octo14 ber 30 of each year, the Bureau shall transmit to the 

15 House Committee on Financial Services and the Senate 

16 Committee on Banking, Housing, and Urban Affairs a re17 port on the Bureau’s whistleblower award program under 

18 this section, including a description of the number of 

19 awards granted and the types of cases in which awards 

20 were granted during the preceding fiscal year. 

21 ‘‘(h) PROTECTION OF WHISTLEBLOWERS.— 

22 ‘‘(1) CONFIDENTIALITY.— 

23 ‘‘(A) IN GENERAL.—Except as provided in 

24 subparagraphs (B) and (C), the Bureau and 

25 any officer or employee of the Bureau, shall not 


pamtmann on DSKBC07HB2PROD with BILLS
9 

•HR 7793 IH

1 disclose any information, including information 

2 provided by a whistleblower to the Bureau, 

3 which could reasonably be expected to reveal 

4 the identity of a whistleblower, except in ac5 cordance with the provisions of section 552a of 

6 title 5, United States Code, unless and until re7 quired to be disclosed to a defendant or re8 spondent in connection with a public proceeding 

9 instituted by the Bureau or any entity described 

10 in subparagraph (C). For purposes of section 

11 552 of title 5, United States Code, this para12 graph shall be considered a statute described in 

13 subsection (b)(3)(B) of such section 552. 

14 ‘‘(B) EFFECT.—Nothing in this paragraph 

15 is intended to limit the ability of the Attorney 

16 General to present such evidence to a grand 

17 jury or to share such evidence with potential 

18 witnesses or defendants in the course of an on19 going criminal investigation. 

20 ‘‘(C) AVAILABILITY TO GOVERNMENT

21 AGENCIES.— 

22 ‘‘(i) IN GENERAL.—Without the loss 

23 of its status as confidential in the hands of 

24 the Bureau, all information referred to in 

25 subparagraph (A) may, in the discretion of 


pamtmann on DSKBC07HB2PROD with BILLS
10 

•HR 7793 IH

1 the Bureau, when determined by the Bu2 reau to be necessary or appropriate, be 

3 made available to— 

4 ‘‘(I) the Department of Justice; 

5 ‘‘(II) an appropriate department 

6 or agency of the Federal Government, 

7 acting within the scope of its jurisdic8 tion; 

9 ‘‘(III) a State attorney general in 

10 connection with any criminal inves11 tigation; 

12 ‘‘(IV) an appropriate department 

13 or agency of any State, acting within 

14 the scope of its jurisdiction; and 

15 ‘‘(V) a foreign regulatory author16 ity. 

17 ‘‘(ii) MAINTENANCE OF INFORMA18 TION.—Each of the entities, agencies, or 

19 persons described in clause (i) shall main20 tain information described in that clause 

21 as confidential, in accordance with the re22 quirements in subparagraph (A). 

23 ‘‘(2) RIGHTS RETAINED.—Nothing in this sec24 tion shall be deemed to diminish the rights, privi25 leges, or remedies of any whistleblower under section 


pamtmann on DSKBC07HB2PROD with BILLS
11 

•HR 7793 IH

1 1057, any other Federal or State law, or under any 

2 collective bargaining agreement. 

3 ‘‘(i) RULEMAKING AUTHORITY.—The Bureau shall 

4 have the authority to issue such rules and regulations as 

5 may be necessary or appropriate to implement the provi6 sions of this section consistent with the purposes of this 

7 section. 

8 ‘‘(j) ORIGINAL INFORMATION.—Information sub9 mitted to the Bureau by a whistleblower in accordance 

10 with rules or regulations implementing this section shall 

11 not lose its status as original information solely because 

12 the whistleblower submitted such information prior to the 

13 effective date of such rules or regulations, provided such 

14 information was submitted after the date of enactment of 

15 this section. 

16 ‘‘(k) PROVISION OF FALSE INFORMATION.—A whis17 tleblower who knowingly and willfully makes any false, fic18 titious, or fraudulent statement or representation, or who 

19 makes or uses any false writing or document knowing the 

20 same to contain any false, fictitious, or fraudulent state21 ment or entry, shall not be entitled to an award under 

22 this section and shall be subject to prosecution under sec23 tion 1001 of title 18, United States Code. 

24 ‘‘(l) UNENFORCEABILITY OF CERTAIN AGREE25 MENTS.— 


pamtmann on DSKBC07HB2PROD with BILLS
12 

•HR 7793 IH

1 ‘‘(1) NO WAIVER OF RIGHTS AND REMEDIES.— 

2 Except as provided under paragraph (3), and not3 withstanding any other provision of law, the rights 

4 and remedies provided for in this section may not be 

5 waived by any agreement, policy, form, or condition 

6 of employment, including by any predispute arbitra7 tion agreement. 

8 ‘‘(2) NO PREDISPUTE ARBITRATION AGREE9 MENTS.—Except as provided under paragraph (3), 

10 and notwithstanding any other provision of law, no 

11 predispute arbitration agreement shall be valid or 

12 enforceable to the extent that it requires arbitration 

13 of a dispute arising under this section. 

14 ‘‘(3) EXCEPTION.—Notwithstanding paragraphs 

15 (1) and (2), an arbitration provision in a collective 

16 bargaining agreement shall be enforceable as to dis17 putes arising under subsection (a)(4), unless the Bu18 reau determines, by rule, that such provision is in19 consistent with the purposes of this title.’’. 

20 (b) CONSUMER FINANCIAL CIVIL PENALTY FUND.— 

21 Section 1017(d)(2) of the Consumer Financial Protection 

22 Act of 2010 (12 U.S.C. 5497(d)(2)) is amended, in the 

23 first sentence, by inserting ‘‘and for awards authorized 

24 under section 1017A’’ before the period at the end. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS