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 withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices".
- Bill Number
- S.J.Res. 130
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 123. (consideration: CR S2265-2266)
- Last Updated
- 2026-05-19T18:28:40Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 130) uses the Congressional Review Act (CRA, a law allowing Congress to overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB, a government agency that protects consumers in financial matters) from withdrawing its earlier guidance on unfair overdraft fee practices.
Key Provisions
- Disapproval of specific rule: Congress disapproves the CFPB rule published on May 12, 2025 (90 Fed. Reg. 20084), which withdrew "Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices" (originally issued October 2, 2024, 89 Fed. Reg. 80075).
- Effect: The withdrawal rule has no force or effect, meaning the original 2024 Circular remains active. The Circular warns banks and credit unions that certain overdraft opt-in practices (where customers must actively agree to overdraft fees) may violate consumer protection laws if misleading or improperly handled.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses the CFPB's 2025 withdrawal, restoring the 2024 Circular as binding guidance.
- Demonstrates CRA application to an agency's withdrawal of its own prior rule, not just new rules (CRA defines "rule" broadly to include rescissions published in the Federal Register).
Potential Impacts
- Financial institutions: Banks and credit unions face renewed scrutiny and potential enforcement actions for overdraft opt-in practices deemed "improper" (e.g., unclear disclosures or pressure tactics), possibly leading to fewer overdraft fees or fines.
- Consumers: Increased protections against unexpected overdraft charges, as the Circular emphasizes fair opt-in processes under laws like the Electronic Fund Transfer Act.
- Government agencies: Limits CFPB's ability to retract its own consumer protection guidance without congressional approval.
- No direct impact on international relations.
Main Stakeholders Affected
- Consumers: Primary beneficiaries through stronger safeguards on bank fees.
- Banks and credit unions: Directly regulated, may need to update overdraft programs.
- CFPB: Authority checked by Congress.
- Congress: Asserts oversight via CRA process (introduced by Sen. Van Hollen, bypassed committee via petition).
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces CRA's scope (5 U.S.C. ch. 8), allowing fast-track disapproval (bypassed committee under 5 U.S.C. 802(c)); original Circular not subject to formal rulemaking, but withdrawal treated as a "rule."
- Constitutional: Upholds congressional oversight of executive agencies (non-delegation concerns indirectly addressed via CRA).
- Political: Highlights partisan divides on consumer finance regulation; placed on Senate calendar April 27, 2026, for potential quick vote. Neutral on broader policy debates.
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: Motion to proceed to consideration of measure rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 123. (consideration: CR S2265-2266) (Roll call 123)
- 2026-04-27: Placed on Senate Legislative Calendar under General Orders. Calendar No. 386.
- 2026-04-27: Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2026-04-27: Senate Committee on Banking, Housing, and Urban Affairs discharged, by petition, pursuant to 5 U.S.C. 802(c).
- 2026-03-18: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-18: Introduced in Senate
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 2026-03-18 — PDF (2 pages)
- 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 2026-04-27 — PDF (4 pages)