A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to "Fair Credit Reporting Act; Preemption of State Laws".

Plain-English Summary

This bill is a "resolution of disapproval," which is a tool Congress can use to cancel or block a regulation that a federal agency has recently issued. Specifically, it targets a rule created by the Consumer Financial Protection Bureau (CFPB) — the federal agency responsible for protecting consumers in financial matters. The CFPB rule in question deals with how federal credit reporting law interacts with state credit reporting laws, essentially determining which rules take priority when federal and state laws conflict on this topic.

The CFPB rule being challenged established that federal law — specifically the Fair Credit Reporting Act (FCRA) — "preempts," or overrides, certain state laws related to credit reporting. This generally means that in areas covered by the federal rule, states would have less ability to set their own, potentially stronger consumer protections around credit reports and credit reporting agencies. The CFPB's rule, in other words, expanded the reach of federal authority over this issue.

If this congressional resolution passes and is signed into law, the CFPB's rule would be canceled and could not be reissued in a substantially similar form. This would most directly affect consumers, credit bureaus, and lenders, since it could restore more power to individual states to pass their own credit reporting protections. People who rely on their credit reports for loans, housing, or employment could be affected, depending on what protections their state had in place or might seek to enact.

The bill was introduced in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs, where it will be reviewed before any further action is taken.