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 "Statement of Policy Regarding Prohibition on Abusive Acts or Practices".

What This Bill Does

This bill is a "congressional disapproval resolution," which is a special type of legislation Congress can use to cancel a rule created by a federal agency. Specifically, this resolution targets a recent action by the Consumer Financial Protection Bureau (CFPB) — the federal agency responsible for protecting consumers in financial transactions. The CFPB had previously withdrawn a policy statement that explained how it would enforce rules against "abusive" practices by financial companies. This bill would block that withdrawal, effectively trying to keep the original policy statement in place.

Some Background Context

To understand this bill, it helps to know a bit of history. The CFPB has the authority to take action against financial companies that engage in "unfair, deceptive, or abusive acts or practices." Several years ago, the CFPB issued a policy statement clarifying what counted as "abusive" behavior, which gave financial companies more specific guidance on what to avoid. More recently, the CFPB moved to withdraw that clarifying statement, which would give the agency broader and less defined authority to pursue "abusive" practice cases. This bill would use Congress's power to say "no" to that withdrawal.

Who Is Affected

This bill primarily affects financial companies — such as banks, lenders, credit card companies, and debt collectors — as well as the consumers who use their services. If the bill passed, financial companies would have clearer, more defined rules about what the CFPB considers "abusive," potentially limiting the agency's flexibility in enforcement. Consumers, on the other hand, could be affected depending on whether broader or narrower enforcement of "abusive practices" rules better serves their interests. The bill has been referred to the Senate Banking Committee, where it will be reviewed before any further action.