119-SJRES-125 Journalist Public Summary
A Senate resolution would overturn the CFPB’s May 12, 2025 withdrawal of guidance—including a 2022 advisory opinion that limited many “pay‑to‑pay” (convenience) fees charged by debt collectors. (govinfo.gov)
Headline Summary
Congress is weighing whether to undo the CFPB’s 2025 move that withdrew earlier guidance restricting “pay‑to‑pay” fees—extra charges for paying a debt online or by phone. (govinfo.gov)
What It Does
S.J.Res. 125 uses the Congressional Review Act to nullify the CFPB’s May 12, 2025 rule that withdrew numerous guidance documents—including the 2022 advisory opinion saying debt collectors generally can’t add convenience fees unless the original contract allows it or a law expressly permits it. If enacted, the 2025 withdrawal would have no force or effect, likely restoring the 2022 guidance’s limits on such fees. (govinfo.gov)
Why It Matters
- For consumers: It could reduce or prevent add‑on payment charges when paying debts by phone or online, costs that can add up for families managing bills. (consumerfinance.gov)
- For debt collectors and servicers: It would likely reinstate compliance expectations from 2022 about when (if ever) convenience fees are allowed. (consumerfinance.gov)
Who’s For It
- Sponsor: Introduced by Sen. Angela Alsobrooks (D‑MD).
- Consumer advocates (e.g., National Consumer Law Center) who have backed limits on “junk fees” and supported the CFPB’s stance that most pay‑to‑pay fees are unlawful. (nclc.org)
- State attorneys general who in 2022 urged the CFPB to stop mortgage servicers and debt collectors from charging “pay‑to‑pay” fees. (ncdoj.gov)
Who’s Against It
- Banking and debt‑collection trade groups that criticized the 2022 advisory opinion, arguing these fees can cover processing costs and offer convenient payment options. (bankingjournal.aba.com)
- The CFPB’s 2025 withdrawal framed many prior guidance documents as imposing unnecessary compliance burdens—an argument echoed by industry critics of the earlier policy. (govinfo.gov)
What’s Next
- Status: As of March 17, 2026, the resolution was introduced and sent to the Senate Banking, Housing, and Urban Affairs Committee.
- Process: Under the CRA, it would need to pass both chambers and be signed by the President to take effect; a disapproved rule cannot be reissued in a “substantially the same” form. (gao.gov)
Discussion