07.30.24

CFPB Warns Against Use of NDAs To Silence Whistleblowers

by: Alex Padalka

The Consumer Financial Protection Bureau (CFPB) says companies using broad confidentiality agreements should ensure that they don't dissuade whistleblowing. In a consumer financial protection circular, the CFPB acknowledges that there are legitimate uses of non-disclosure agreements and other types of agreements that contain confidentiality requirements. But, it added, the wording and context of such agreements may "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." In such instances, the company using those agreements could be in violation of the Consumer Financial Protection Act.

Read the full article on Financial Advisor IQ