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 "Debt Collection Practices (Regulation F); Pay-to-Pay Fees".

What This Bill Does

This bill is a "congressional disapproval resolution," which is a specific type of legislation Congress can use to cancel or block a federal agency rule. In this case, it targets a decision made by the Consumer Financial Protection Bureau (CFPB) — the federal agency that oversees financial products and consumer protections. Specifically, the CFPB had previously created a rule about "pay-to-pay fees" in debt collection (sometimes called "convenience fees"), and then later decided to withdraw that rule. This bill would use Congress's authority to formally disapprove of the CFPB's decision to withdraw the rule — essentially trying to reinstate or preserve the original consumer protection.

Background on the Underlying Issue

The original CFPB rule, known as "Regulation F," addressed fees that debt collectors charge consumers simply for using certain payment methods, like paying online or by phone. These are sometimes called "pay-to-pay" or convenience fees. Consumer advocates argued these fees were unfair, while the debt collection industry argued they were a legitimate cost of doing business. When the CFPB withdrew the rule, it removed those protections. This bill is Congress's attempt to push back on that withdrawal.

Who It Affects

This bill would primarily affect consumers who owe debts and debt collection companies. If the disapproval resolution were to pass, it could restore limits or restrictions on the fees debt collectors can charge people for making payments. Debt collectors would face renewed regulatory scrutiny over these charges. Currently, the bill has been introduced in the Senate and referred to the Banking, Housing, and Urban Affairs Committee, meaning it is in the very early stages of the legislative process.