WASHINGTON – Senator Ruben Gallego (D-AZ) supported the Stop the Scammers Act to restore critical Consumer Financial Protection Bureau (CFPB) funding and authorize the CFPB to reward whistleblowers who report wrongdoing.
This legislation follows the passage of the Republican tax bill, which slashed CFPB funding in half and removed vital protections for victims of scams and fraud and people experiencing unfair, deceptive, and abusive practices from financial institutions.
“The Republican tax bill was a gift to ultra-wealthy corporations at the expense of working families. By slashing CFBP funding, it gave scammers and shady businesses a free pass to rip people off,” said Senator Gallego. “This bill restores the CFPB’s funding and makes sure it has the tools to keep protecting consumers from fraud, scams, and abusive business practices.”
The Stop the Scammers Act would encourage 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 monetary penalties imposed on companies and individuals who violate federal consumer financial protection laws. The legislation would also allow whistleblowers to retain independent counsel and protect a whistleblower’s identity. The bill also restores CFPB funding to 12 percent of the Federal Reserve’s operating budget, ensuring the Bureau can carry out its mission and properly protect Americans.
Read the full bill HERE.
Senator Gallego has consistently stood up to the Trump administration’s efforts to gut consumer protections for working families. This month, he led colleagues in condemning the administration’s decision terminate the consent order against Navy Federal Credit Union, effectively excusing them from accountability for charging millions in illegal surprise overdraft fees to their members – primarily active-duty service members, veterans, Department of Defense employees, and their families. After the administration reversed a rule that banned medical debt from credit reports, Senator Gallego led colleagues in fighting to protect the 8.2% of Arizonans with medical debt. Earlier this year, Senator Gallego pushed back against CFPB’s decision to withdraw a proposed rule that would have required consumer consent before selling or sharing sensitive data – including financial information, Social Security numbers, and income data.
7/31/25