Stop the Scammers Act

This bill encourages people to report scams and illegal practices in consumer finance. If someone shares original information that helps the consumer protection agency win a case, they can get 10% to 30% of the civil penalties collected. If the penalties are under $1,000,000, a single whistleblower gets at least 10% or $50,000, whichever is more. Awards are paid from the agency’s penalty fund. People can report anonymously if they use a lawyer, and their identity is kept confidential, with limited exceptions for law enforcement. Lying to the government disqualifies you and can lead to prosecution. The agency must consider how helpful the information was when setting the award amount, can deny awards to wrongdoers or those who planned the misconduct, and must issue annual reports on the program. Some award decisions can be appealed in court within 30 days. Employers generally cannot force workers to waive rights or use pre-dispute arbitration for these whistleblower issues, except in certain union contracts. The bill also adjusts the agency’s funding cap so it can keep up its work.

• Who is affected: People who report consumer finance violations, workers in banks and other finance companies, and the federal consumer protection agency.
• What changes: Cash awards for useful tips (10%–30%, with a $50,000 minimum in smaller cases), privacy protections, right to use a lawyer and report anonymously, limits on forced arbitration/waivers, yearly reports to Congress, and clearer rules for appeals and false statements.
• When: After the law takes effect and as the agency issues rules. Tips sent after the law is enacted can still count as “original information,” even if sent before rules are finalized.