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 "Truth in Lending (Regulation Z); Use of Digital User Accounts to Access Buy Now, Pay Later Loans".

Bill Number: S.J.Res. 134
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 Voice Vote. (consideration: CR S2272)
Last Updated: 2026-05-19T18:19:28Z

AI-Generated Summary

Purpose

This joint resolution (S.J. Res. 134) uses the Congressional Review Act (CRA, chapter 8 of title 5, U.S. Code) to disapprove a rule by the Bureau of Consumer Financial Protection (CFPB). The targeted rule withdraws a prior CFPB regulation on "Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans" (original rule at 89 Fed. Reg. 47068, May 31, 2024; withdrawal at 90 Fed. Reg. 20084, May 12, 2025). By disapproving the withdrawal, Congress aims to keep the original consumer protection rule in effect.

Key Provisions

Disapproval of withdrawal rule: Explicitly states Congress disapproves the CFPB's withdrawal action.
No force or effect: The withdrawal rule is nullified upon enactment, preventing the original rule from being removed.

Significant Changes to Existing Law

Blocks CFPB from withdrawing its 2024 rule, which applies Truth in Lending Act (TILA) requirements—like clear disclosures on costs, fees, and repayment—to "Buy Now, Pay Later" (BNPL) loans accessed via digital user accounts (e.g., apps like Affirm or Klarna).
No new laws created; instead, restores and preserves the status quo of the original Regulation Z amendment.

Potential Impacts

Government agencies: Limits CFPB's regulatory flexibility, requiring enforcement of the BNPL rule.
Citizens (consumers): Maintains protections for users of BNPL loans, ensuring better transparency on short-term, interest-free installment loans often used for online purchases.
Financial sector: BNPL providers must comply with TILA disclosures, potentially increasing operational costs but standardizing practices.
No direct international relations impact.

Main Stakeholders Affected

CFPB: Loses ability to retract its rule.
BNPL lenders/providers (e.g., fintech companies offering digital installment loans): Face ongoing TILA compliance.
Consumers: Benefit from retained disclosures on loan terms.
Congress and banking committees: Demonstrates oversight of agency rulemaking.
Retailers/e-commerce platforms: Indirectly affected via partnered BNPL services.

Notable Legal, Constitutional, or Political Implications

Legal: Invokes CRA's fast-track process (bypassed committee via petition under 5 U.S.C. 802(c)), a tool for Congress to override agency actions within 60 legislative days of submission.
Constitutional: Reinforces congressional authority over executive rulemaking (Article I powers).
Political: Highlights partisan or oversight tensions on consumer finance regulation; placed on Senate calendar April 27, 2026, after introduction by Sen. Reed (D-RI) on March 18, 2026. If enacted and signed (or veto overridden), sets precedent for using CRA against rule withdrawals.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Reed, Jack [D-RI]

Recent Actions

2026-05-13: Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2272)
2026-04-27: Placed on Senate Legislative Calendar under General Orders. Calendar No. 390.
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 Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans. — 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 Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans. — issued 2026-04-27 — PDF (4 pages)