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 the withdrawal of the rule relating to "Bulletin 2023-01: Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts".

Plain-English Summary

This resolution is Congress's way of pushing back against a decision made by the Consumer Financial Protection Bureau (CFPB). Specifically, the CFPB had previously issued a guidance document in 2023 warning student loan servicers that it is unfair and illegal to continue billing borrowers or trying to collect on student loan debts that have already been wiped out ("discharged") through bankruptcy. At some point after that, the CFPB decided to withdraw — or cancel — that guidance. This resolution seeks to formally disapprove of that withdrawal, essentially telling the CFPB it disagrees with the agency's decision to pull back that consumer protection.

Under a law called the Congressional Review Act, Congress has the authority to vote to overturn certain agency actions, including agency decisions to rescind existing rules or guidance. If this resolution passes both chambers of Congress and is signed into law, it would nullify the CFPB's withdrawal, which could have the practical effect of restoring the original 2023 guidance that protected borrowers from being billed for debts they legally no longer owe.

The people most directly affected are student loan borrowers who have successfully discharged their student loans through bankruptcy. Without the original CFPB guidance in place, those borrowers could potentially face billing or collection attempts from loan servicers even after a court has legally eliminated their debt. Loan servicers and collection agencies would also be affected, as reinstating the guidance would subject them to CFPB enforcement action for pursuing these discharged debts.

This bill has been introduced in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs, meaning it has not yet been voted on by the full Senate or the House.