CFPB enforces whistleblower protections

The Consumer Financial Protection Bureau released a circular warning to the public that certain confidentiality agreements violate Section 1057 of the Consumer Financial Protection Act.

The document states: “Although confidentiality agreements can be entered into for legitimate purposes, such as to ensure the protection of confidential trade secrets, such agreements, depending on how they are worded and the context in which they are employed, could lead an employee to reasonably believe that they would be sued or subject to other adverse actions if they disclosed information related to suspected violations of federal consumer financial law to government investigators. Threats of this nature can lead to violations of Section 1057 and impede investigations into potential wrongdoing, including the CFPB’s efforts to uncover violations of the consumer financial protection laws it enforces.”

Learn more about the document here.