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 2024-05: Improper Overdraft Opt-In Practices".
- Bill Number
- H.J.Res. 169
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-30: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-05-14T18:43:37Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 169) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to block a decision by the Bureau of Consumer Financial Protection (CFPB), an agency that protects consumers in financial matters. Specifically, it disapproves the CFPB's rule withdrawing its earlier guidance on "improper overdraft opt-in practices."
Key Provisions
- Disapproval of CFPB Rule: Congress explicitly disapproves the CFPB's rule published on May 12, 2025 (90 Fed. Reg. 20084), which withdrew "Consumer Financial Protection Circular 2024-05" (originally published October 2, 2024, at 89 Fed. Reg. 80075).
- No Force or Effect: The withdrawn rule is nullified, meaning it cannot be enforced.
Significant Changes to Existing Law
- Reverses the CFPB's withdrawal, effectively reinstating the original Circular 2024-05.
- The Circular addressed overdraft opt-in practices, where banks encourage customers to opt into fees for overdrawn accounts; it flagged certain practices as improper under consumer protection laws like the Electronic Fund Transfer Act.
Potential Impacts
- On Government Agencies: Limits CFPB's ability to retract its own guidance, potentially requiring ongoing enforcement of the Circular.
- On Citizens (Consumers): Maintains protections against banks misleading customers into overdraft fee programs, potentially reducing unexpected fees for everyday banking users.
- On Financial Institutions: Banks and credit unions must continue complying with the Circular's standards on transparent opt-in processes, avoiding aggressive sales tactics.
Main Stakeholders Affected
- Consumers: Benefit from restored safeguards on overdraft fees.
- Financial Institutions: Face continued regulatory scrutiny on how they offer overdraft services.
- CFPB: Authority to modify its guidance is checked by Congress.
- Congress: Asserts oversight over agency rulemaking.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes Chapter 8 of Title 5, U.S. Code (Congressional Review Act), a fast-track process for Congress to veto agency actions without presidential signature if passed by both chambers.
- Constitutional: Reinforces Congress's oversight of the executive branch under Article I, balancing agency rulemaking power.
- Political: Introduced by Rep. Velazquez (D-NY) and referred to the House Financial Services Committee; signals partisan or bipartisan interest in consumer finance regulation, potentially affecting bank practices amid debates on fees and consumer rights.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Velázquez, Nydia M. [D-NY-7]
Recent Actions
- 2026-04-30: Referred to the House Committee on Financial Services.
- 2026-04-30: Introduced in House
- 2026-04-30: Introduced in House
Bill Versions
- 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 2024–05: Improper Overdraft Opt-In Practices". — issued 2026-04-30 — PDF (2 pages)