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 2022-06: Unanticipated Overdraft Fee Assessment Practices".
- Bill Number
- S.J.Res. 169
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-20T19:09:59Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 169) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to disapprove a Bureau of Consumer Financial Protection (CFPB) action. Specifically, it targets the CFPB's decision to withdraw its earlier guidance on "unanticipated overdraft fee assessment practices" (Circular 2022-06, issued in 2022).
Key Provisions
- Disapproval of Withdrawal Rule: Congress declares the CFPB's rule withdrawing Circular 2022-06 (published May 12, 2025) invalid, giving it "no force or effect."
- Reinstatement Effect: By nullifying the withdrawal, the original 2022 Circular remains in place. This Circular warned financial institutions that charging overdraft fees without clear consumer consent could violate federal consumer protection laws.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses an agency decision using the Congressional Review Act.
- Restores the CFPB's 2022 guidance, which had been supervisory guidance (non-binding advice) on overdraft fees, effectively blocking banks from certain fee practices deemed unfair.
Potential Impacts
- On Government Agencies: Limits CFPB's ability to retract its own consumer protection guidance, potentially tying its hands on future regulatory changes.
- On Citizens: Benefits consumers by maintaining protections against unexpected overdraft fees (common bank charges when accounts go negative), potentially saving money on banking costs.
- On Financial Institutions: Requires banks to continue following the 2022 guidance, restricting "surprise" overdraft fees and possibly reducing revenue from such practices.
- No direct impact on international relations.
Main Stakeholders Affected
- Consumers: Primary beneficiaries through continued safeguards on overdraft fees.
- Banks and Financial Institutions: Face ongoing compliance requirements and limits on fee practices.
- CFPB: Regulatory authority challenged, affecting its flexibility in issuing or withdrawing guidance.
- Congress: Asserts oversight over executive branch agencies.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act, a fast-track process for Congress to block agency rules within a set window (typically 60 legislative days). If passed and signed/enacted, the withdrawal rule cannot be reissued without new statutory authority.
- Constitutional: Reinforces Congress's oversight of executive agencies under the separation of powers.
- Political: Introduced by Sen. Elizabeth Warren (D-MA) in the 119th Congress (2025-2026), signals partisan pushback on perceived rollbacks of consumer protections, referred to the Senate Banking Committee for review.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-13: 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 2022–06: Unanticipated Overdraft Fee Assessment Practices. — issued 2026-04-13 — PDF (2 pages)