In July 2024, the Consumer Financial Protection Bureau issued a circular warning financial institutions that broad employee confidentiality agreements may violate the whistleblower protections under the Consumer Financial Services Act. The CFPB asserts that such agreements might have the effect of making employees reasonably feel they are not free to communicate with government enforcement agencies and investigators about potential violations of federal consumer financial law.in violation of Section 1057 of the Consumer Financial Protection Act, which prohibits discrimination against employees who provide information about potential legal violations, testify, object to unlawful practices, or file lawsuits under federal consumer financial law. The CFPB press release is here and the circular is here.
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