Stop the Scammers Act

The "Stop the Scammers Act" amends the Consumer Financial Protection Act of 2010 to enhance the Bureau of Consumer Financial Protection's (BCFP) ability to protect consumers and ensure fair financial markets. A primary provision establishes a new whistleblower incentives and protection program within the BCFP, designed to encourage individuals to report violations of federal consumer financial law. Under this program, whistleblowers who voluntarily provide original information leading to successful enforcement actions, resulting in monetary sanctions exceeding $1,000,000, will be eligible for awards. These awards will range from 10 to 30 percent of the civil money penalties collected, paid from the Consumer Financial Civil Penalty Fund. The bill also sets a minimum award of $50,000 or 10% of penalties for actions collecting less than $1,000,000. The legislation outlines criteria for determining award amounts, including the significance of the information and the whistleblower's assistance, while also specifying conditions under which an award may be denied. It mandates confidentiality protections for whistleblowers' identities and ensures that their rights and remedies cannot be waived by employment agreements or predispute arbitration clauses, with limited exceptions. The BCFP is also required to report annually to Congress on the program's effectiveness. Furthermore, the bill addresses the BCFP's operational capacity by increasing its funding cap. It amends the Consumer Financial Protection Act of 2010 to raise the percentage of the Federal Reserve System's operating expenses allocated to the BCFP from 6.5% to 12% . This aims to provide the Bureau with more substantial resources to fulfill its mission of ensuring fair, transparent, and competitive markets for financial products and services.