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 "Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)".
- Bill Number
- S.J.Res. 36
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-03-11: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-17T20:16:00Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 36) aims to block a new rule issued by the Bureau of Consumer Financial Protection (CFPB), a federal agency that oversees consumer financial products. The rule, titled "Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)," was published in the Federal Register on January 14, 2025. The resolution uses the Congressional Review Act (CRA)—a law allowing Congress to overturn certain agency rules—to prevent the rule from being implemented.
Key Provisions
- Disapproval of the Rule: The resolution explicitly states that Congress disapproves the CFPB rule, rendering it null and void with no legal effect.
- Reference to CRA: It invokes Chapter 8 of Title 5 of the U.S. Code, which provides a fast-track process for Congress to review and reject agency regulations within a specific timeframe after they are finalized.
- Introduction and Referral: Introduced in the Senate on March 11, 2025 (legislative day March 10), by Senators Rounds, Scott of South Carolina, Hagerty, Crapo, and Lummis; referred to the Senate Committee on Banking, Housing, and Urban Affairs for further consideration.
Significant Changes to Existing Law
- This resolution does not amend statutes but overrides a specific administrative rule under the Fair Credit Reporting Act (FCRA), which Regulation V implements. The rule would have expanded protections by barring creditors (like banks or lenders) and consumer reporting agencies (like credit bureaus) from using or sharing certain medical information in credit decisions, such as debt collection or lending approvals.
- By disapproving it, the resolution maintains the status quo under current FCRA interpretations, where medical information can sometimes be considered in financial decisions unless it violates other privacy laws.
Potential Impacts
- On Government Agencies: Limits the CFPB's authority to enforce broader privacy protections in consumer finance, potentially requiring the agency to redirect resources to other priorities or face challenges in similar rulemaking.
- On Citizens: Consumers may continue to face situations where medical information (e.g., illness-related debts) influences credit scores or loan approvals, without the added safeguards the rule proposed. This could affect access to credit for those with medical debts.
- On International Relations: No direct impact, as the rule focuses on domestic consumer protections.
Main Stakeholders Affected
- Financial Institutions and Creditors: Banks, lenders, and debt collectors benefit from the rule's disapproval, as they avoid new restrictions on using medical data.
- Consumer Reporting Agencies: Entities like Equifax or TransUnion are relieved from compliance costs and operational changes related to medical information handling.
- Consumers: Individuals with medical debts or health-related financial issues may experience ongoing vulnerabilities in credit reporting and lending.
- CFPB and Regulators: The agency faces a setback in its regulatory agenda, influencing future consumer protection efforts.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the CRA as a tool for congressional oversight of executive branch agencies, ensuring rules do not exceed statutory authority without legislative buy-in. If passed by both chambers and signed (or not vetoed), it legally nullifies the rule permanently.
- Constitutional: Highlights the separation of powers, where Congress checks agency actions under Article I (legislative authority), preventing what some view as regulatory overreach.
- Political: Introduced by Republican senators, it signals partisan divides on consumer regulation; success depends on majority support in Congress and the president's stance, potentially shaping debates on financial privacy versus industry flexibility.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Sen. Scott, Tim [R-SC], Sen. Hagerty, Bill [R-TN], Sen. Crapo, Mike [R-ID], Sen. Lummis, Cynthia M. [R-WY], Sen. Cornyn, John [R-TX]
Recent Actions
- 2025-03-11: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-03-11: 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 Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V). — issued 2025-03-11 — PDF (2 pages)