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".
- Bill Number
- H.J.Res. 185
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-13: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-05-27T14:28:21Z
AI-Generated Summary
Summary of H.J. Res. 185 (119th Congress, 2d Session)
Purpose
This joint resolution uses the Congressional Review Act (a law allowing Congress to quickly overturn certain federal agency rules) to disapprove a Bureau of Consumer Financial Protection (CFPB) action that withdrew its earlier guidance document, Consumer Financial Protection Circular 2024-03: Unlawful and Unenforceable Contract Terms and Conditions. By blocking the withdrawal, it effectively keeps the original circular in place.
Key Provisions
- Congress disapproves the CFPB rule published on May 12, 2025 (90 Fed. Reg. 20084), which withdrew the Circular 2024-03 (published June 21, 2024, 89 Fed. Reg. 51955).
- The disapproved withdrawal rule has no force or effect, meaning the original circular remains active.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses an agency's decision to withdraw its own interpretive guidance (the circular, which outlined CFPB's views on contract terms it considers illegal under consumer protection statutes like the Consumer Financial Protection Act).
- Reinforces the original circular's guidance on identifying unlawful contract terms (e.g., those that waive consumer rights or hinder CFPB enforcement).
Potential Impacts
- Government agencies: Limits CFPB's ability to retract its own guidance via formal rulemaking, potentially requiring alternative processes for future changes.
- Citizens (consumers): Maintains CFPB protections against potentially unfair contract terms in financial products, aiding enforcement against deceptive practices.
- Financial industry: Businesses must continue complying with the circular's standards, facing ongoing scrutiny for contract clauses deemed unenforceable.
- No direct impact on international relations.
Main Stakeholders
- Bureau of Consumer Financial Protection (CFPB): Agency whose action is overturned.
- Financial institutions and companies: Subject to the reinstated guidance on contract terms.
- Consumers: Benefit from continued protections against unlawful clauses in financial agreements.
- Congress: Exercises oversight via the Congressional Review Act.
Notable Legal, Constitutional, or Political Implications
- Legal: Demonstrates the Congressional Review Act's power to nullify agency rules (including withdrawals) without presidential signature if passed by both chambers; the original circular was non-binding guidance but influential in enforcement.
- Constitutional: Upholds Congress's oversight of executive agencies under Article I, preventing unilateral agency retreats from prior positions.
- Political: Introduced by Rep. Vargas (D-CA) and referred to the House Financial Services Committee; reflects partisan divides on consumer protection regulation (date: May 13, 2026).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-13: Referred to the House Committee on Financial Services.
- 2026-05-13: Introduced in House
- 2026-05-13: 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 2024–03: Unlawful and Unenforceable Contract Terms and Conditions". — issued 2026-05-13 — PDF (2 pages)