119-HJRES-185 Journalist Public Summary
A new House resolution would use the Congressional Review Act to block the CFPB’s 2025 rule that withdrew guidance on “unlawful or unenforceable” fine‑print contract terms, meaning the withdrawal would have no legal effect if the measure becomes law. (govinfo.gov)
Public Summary: 119-HJRES-185
Headline Summary: A House joint resolution seeks to overturn the CFPB’s May 12, 2025 withdrawal of its 2024 consumer‑protection circular on deceptive fine‑print contract terms, using the fast‑track Congressional Review Act process. (govinfo.gov)
What It Does: The resolution targets the CFPB’s “Interpretive Rules, Policy Statements, and Advisory Opinions; Withdrawal” rule (90 Fed. Reg. 20084), which explicitly listed Consumer Financial Protection Circular 2024‑03 among the items withdrawn. By passing a CRA disapproval, Congress would declare that withdrawal rule has no force or effect. Circular 2024‑03 warned that including terms that are unlawful or unenforceable under federal or state law in consumer‑finance contracts can be a deceptive practice. (govinfo.gov)
- Consumer advocates who supported the original circular say it helps stop companies from using fine print to mislead people into thinking they’ve waived legal rights (for example, limits on suing or posting honest reviews). (consumerfinance.gov)
- Backers also argue that keeping this guidance available promotes consistent enforcement across agencies and deters deceptive contract language. (consumerfinance.gov)
Who’s For It:
- Opponents of reversing the withdrawal argue that broad guidance like circulars can impose de facto new obligations without full notice‑and‑comment rulemaking—one of the CFPB’s stated reasons for the 2025 mass‑withdrawal action. (govinfo.gov)
- Financial‑industry groups have criticized related CFPB efforts to restrict certain contract terms, saying proposals lacked adequate legal and economic support—signals of likely opposition to reinstating the circular’s effect. (bpi.com)
Who’s Against It:
What’s Next: As of May 13, 2026, the resolution has been introduced in the House and referred to the Financial Services Committee. To take effect, it would still need to pass both chambers and be signed by the President. Under the CRA, a successful disapproval prevents the targeted rule—in this case, the withdrawal—from taking or continuing effect, and generally bars the agency from issuing a “substantially the same” rule later. (congress.gov)
Discussion