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".

What This Bill Does

This is a "disapproval resolution," which is a special type of congressional action that allows Congress to cancel a regulation that a federal agency has recently put in place. Specifically, this resolution targets a rule created by the Consumer Financial Protection Bureau (CFPB) — the federal agency responsible for protecting consumers in financial matters. The rule in question deals with how the federal Fair Credit Reporting Act (FCRA) interacts with state-level consumer credit laws, particularly on the question of "preemption" — meaning, which laws take priority when federal and state rules differ.

The Rule Being Challenged

The CFPB rule at the center of this resolution addressed whether federal credit reporting law overrides, or "preempts," state laws that may offer consumers additional protections related to their credit reports and credit information. In general, states sometimes pass their own consumer protection laws that go beyond what federal law requires. The CFPB's rule clarified the boundaries of when federal law supersedes those state rules. If this disapproval resolution passes both chambers of Congress and is signed by the President, that CFPB rule would be eliminated and could not be reissued in the same form.

Who Is Affected

This legislation could affect everyday consumers, credit bureaus, lenders, and state governments. Depending on what the original CFPB rule said, consumers in certain states might lose or retain additional credit-related protections. Lenders and credit reporting companies could also see changes in which rules — federal or state — they are required to follow. The bill was introduced in the Senate and has been referred to the Banking, Housing, and Urban Affairs Committee for further review.