WASHINGTON – U.S. Senators John Hickenlooper and Catherine Cortez Masto, alongside 20 of their Senate colleagues, recently introduced the Stop the Scammers Act to restore critical Consumer Financial Protection Bureau (CFPB) funding and authorize the CFPB to reward whistleblowers who report wrongdoing.
The bill follows the passage of Republicans’ budget bill, which slashed CFPB funding in half and removed essential consumer protections for victims of scams and fraud, as well as people experiencing unfair, deceptive, or abusive practices from financial institutions.
“Congress gave the CFPB a simple job: protect Americans from getting ripped off and save them money,” said Hickenlooper. “Republicans promised to fight for working people, then fired the cops on the beat of our financial system. Our bill puts power back in the hands of American consumers.”
“The CFPB has proven to be a champion for everyday Americans, protecting them from scammers and predatory business practices,” said Cortez Masto. “Slashing the CFPB’s funding is a short-sighted decision that will have long-lasting effects on working families and our financial markets. It’s important that we not only restore this funding but also give them more tools to keep us safe from scams.”
Specifically, the Stop the Scammers Act would restore CFPB funding from 6.5% to 12% of the Federal Reserve’s operating budget, ensuring the Bureau can carry out its mission and properly protect Americans.
In addition, the bill encourages whistleblowers to come forward by allowing the CFPB to reward whistleblowers with financial compensation from the Civil Penalty Fund. The money for this fund comes directly from fines companies and individuals pay when they violate federal consumer financial protection laws. The legislation would also allow whistleblowers to retain independent counsel to protect their identity.
In February, Hickenlooper called on Russell Vought, Director of the Office of Management and Budget, to end his directive freezing all supervisory and enforcement action at the Consumer Financial Protection Bureau (CFPB). Hickenlooper also took to the Senate floor to call out Trump administration efforts to gut the CFPB. Hickenlooper previously chaired the Senate Commerce Committee’s Subcommittee on Consumer Protection, Product Safety and Data Security in the 118th Congress.
Full text of the bill is available HERE.
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