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 "Consumer Financial Protection Circular 2023-02: Reopening Deposit Accounts That Consumers Previously Closed".
- Bill Number
- S.J.Res. 143
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-25: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-05-18T15:09:30Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 143) aims to disapprove a rule proposed by the Bureau of Consumer Financial Protection (CFPB), an agency that regulates financial products to protect consumers. Specifically, it targets the CFPB's action to withdraw a prior guidance document (a "circular") that addressed unfair practices by financial institutions in reopening deposit accounts (like checking or savings accounts) that consumers had previously closed. By disapproving the withdrawal, the resolution seeks to keep the original circular in place.
Key Provisions
- Disapproval of Withdrawal Rule: The resolution formally disapproves the CFPB's rule (published in the Federal Register on May 12, 2025, at 90 Fed. Reg. 20084) that would have withdrawn the 2023 circular (published on May 24, 2023, at 88 Fed. Reg. 33545).
- No Force or Effect: The withdrawn rule is declared to have no legal effect, meaning the original circular remains active.
- Congressional Review Act (CRA) Mechanism: This uses the CRA (chapter 8 of title 5, United States Code), a law allowing Congress to overturn certain agency rules through a simple majority vote, without needing presidential approval if passed within a specific timeframe.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses an agency's attempt to undo its own prior guidance.
- The original circular (2023-02) interpreted existing consumer protection laws (like the Consumer Financial Protection Act) to prohibit financial institutions from reopening closed accounts without clear consumer consent, treating such actions as potentially unfair or deceptive. By blocking the withdrawal, this resolution prevents the CFPB from weakening those protections.
Potential Impacts
- On Government Agencies: Limits the CFPB's flexibility to revise or withdraw its own guidance, potentially increasing congressional oversight of the agency's rulemaking process.
- On Citizens (Consumers): Maintains protections against unauthorized reopening of bank accounts, which could prevent unwanted fees, overdrafts, or access to personal funds. This benefits consumers who close accounts to avoid issues like high fees.
- On Financial Institutions: Requires banks and credit unions to continue complying with the circular's rules, potentially increasing operational costs for account management but promoting fairer practices.
- No Direct International Relations Impact: This is a domestic consumer finance issue with no apparent effects on foreign policy or global relations.
Main Stakeholders Affected
- Consumers: Primary beneficiaries, as they retain safeguards against surprise account reopenings.
- Financial Institutions (e.g., Banks and Credit Unions): Directly regulated entities that must adhere to the circular's requirements on account handling.
- Bureau of Consumer Financial Protection (CFPB): The agency whose authority to adjust its guidance is checked by Congress.
- Congress: Exercises its oversight role under the CRA to influence executive branch actions.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the CRA as a tool for Congress to review and nullify agency actions, including withdrawals of prior rules, ensuring consumer protections aren't easily rolled back. The circular itself draws on laws prohibiting "unfair, deceptive, or abusive acts or practices" (UDAAP) in finance.
- Constitutional: Aligns with the separation of powers by allowing the legislative branch to check executive agency decisions, without altering the Constitution itself.
- Political: Highlights partisan or ideological divides on consumer regulation—supporters may see it as protecting everyday people from bank practices, while critics might view it as unnecessary interference in agency operations. Introduced by Sen. Whitehouse (D-RI) in the 119th Congress (2025-2026), it reflects ongoing debates over financial oversight post-Dodd-Frank Act reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Whitehouse, Sheldon [D-RI]
Recent Actions
- 2026-03-25: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-25: 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 2023–02: Reopening Deposit Accounts That Consumers Previously Closed. — issued 2026-03-25 — PDF (2 pages)