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 2022-07: Reasonable Investigation of Consumer Reporting Disputes".
- Bill Number
- S.J.Res. 173
- 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
- 2026-05-21T18:19:00Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 173) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB) from withdrawing its earlier guidance document, titled Consumer Financial Protection Circular 2022-07: Reasonable Investigation of Consumer Reporting Disputes. The goal is to keep this 2022 circular in effect.
Key Provisions
- Disapproval of CFPB Rule: Congress explicitly disapproves the CFPB's May 2025 rule (published at 90 Fed. Reg. 20084) that sought to withdraw the 2022 circular (published at 87 Fed. Reg. 71507).
- No Force or Effect: The withdrawal rule is nullified and cannot be implemented.
Significant Changes to Existing Law
- Reverses the CFPB's attempt to eliminate the 2022 circular, effectively restoring or maintaining its requirements on how companies (like credit reporting agencies) must investigate consumer disputes about their reports.
- No new laws are created; it simply overrides an agency action under the Congressional Review Act (chapter 8 of title 5, U.S. Code).
Potential Impacts
- Government Agencies: Limits CFPB's ability to retract its own guidance, reinforcing congressional oversight of independent agencies.
- Citizens: Consumers benefit from ongoing CFPB guidance on fair handling of credit report disputes, potentially leading to better accuracy in credit files and easier corrections.
- No International Relations Impact: This is a domestic consumer protection matter with no foreign policy elements.
- Businesses: Consumer reporting companies (e.g., credit bureaus) remain subject to the circular's standards for "reasonable" investigations.
Main Stakeholders Affected
- Bureau of Consumer Financial Protection (CFPB): Loses authority to withdraw its guidance.
- Consumers: Gain continued protections in disputing inaccurate financial reports.
- Consumer Reporting Agencies: Must comply with the reinstated circular's investigation requirements.
- Congress: Exercises direct control over agency rulemaking.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act, a streamlined process for overturning agency rules without presidential signature (though it requires majority votes in both chambers and can face veto). Ensures the 2022 circular retains legal weight as non-binding guidance that influences enforcement.
- Constitutional: Highlights separation of powers, with Congress checking executive branch agencies.
- Political: Introduced by Sen. Duckworth (D-IL) and referred to the Senate Banking Committee; signals partisan or bipartisan interest in consumer protections amid agency leadership changes. No broader constitutional challenges noted in the text.
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 2022–07: Reasonable Investigation of Consumer Reporting Disputes. — issued 2026-04-13 — PDF (2 pages)