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 "Consumer Financial Protection Circular 2024-03: Unlawful and Unenforceable Contract Terms and Conditions".

What This Bill Does

This resolution is a formal act of congressional disapproval — essentially Congress saying "we disagree with this decision" to a federal agency. Specifically, it targets an action taken by the Consumer Financial Protection Bureau (CFPB), the federal agency responsible for protecting consumers in financial transactions. The CFPB had previously issued guidance in 2024 (called "Circular 2024-03") warning that certain contract terms and conditions used by financial companies could be illegal and unenforceable against consumers. The CFPB later withdrew that guidance, and this resolution is Congress's attempt to reverse that withdrawal — in other words, to reinstate the original consumer protection guidance.

Who It Affects

This bill would most directly affect everyday Americans who enter into financial contracts — such as loan agreements, credit card terms, bank account agreements, or other financial service contracts. The original 2024 CFPB guidance was designed to protect consumers from contract clauses that companies might use to limit consumers' legal rights or impose unfair terms. If this resolution succeeds, that protective guidance would be restored, potentially giving consumers and regulators stronger grounds to challenge certain contract terms used by banks, lenders, and other financial companies. Financial institutions that use such contract terms would also be directly affected, as they could face greater regulatory scrutiny.

Where Things Stand

The resolution was introduced in the Senate and has been referred to the Senate Committee on Banking, Housing, and Urban Affairs, where it will be reviewed before any further action. It has not yet been voted on.