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 2024-03: Unlawful and Unenforceable Contract Terms and Conditions".

119th Congress Introduced by Catherine Cortez Masto

Disapprove the CFPB rule withdrawing the 2024 Circular on unlawful and unenforceable contract terms, leaving the Circular in effect.

Motion to proceed to consideration of measure rejected in Senate by Voice Vote. (consideration: CR S2270-2271)

Summary of SJRES 128 (119th Congress)

Purpose

This joint resolution uses the congressional disapproval process under the Congressional Review Act (chapter 8 of title 5, United States Code) to disapprove a rule submitted by the Bureau of Consumer Financial Protection (BCFP, often referred to as CFPB) related to the withdrawal of a prior rule.

Specifically, it targets the rule that withdraws “Consumer Financial Protection Circular 2024–03: Unlawful and Unenforceable Contract Terms and Conditions.” The withdrawal rule is identified in the text as published at 89 Federal Register 51955 (June 21, 2024) and the withdrawal is noted again at 90 Federal Register 20084 (May 12, 2025).

Key Provisions

The bill states Congress disapproves the particular BCFP rule withdrawing the 2024 Circular regarding unlawful and unenforceable contract terms and conditions.

Upon enactment, the disapproved rule would have no force or effect. In other words, the rule withdrawing the Circular would be nullified by this joint resolution, leaving the policy status quo prior to that withdrawal (i.e., the Circular’s status would not be replaced by the withdrawal rule).

Who or What is Affected

The primary effect is on the Bureau of Consumer Financial Protection (BCFP) and its rulemaking authority related to contract terms and conditions.

Affects regulated entities and consumers interacting with consumer financial products and services that could be governed by the underlying Circular and any subsequent enforcement considerations tied to unlawful or unenforceable contract terms.

Procedural/Timeline Details

Introduced in the Senate by Senator Catherine Cortez Masto on March 17, 2026.

The bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs; the committee discharged by petition on April 27, 2026, and the measure was placed on the Senate Legislative Calendar (Calendar No. 384) on the same date.

As of the latest action history, a motion to proceed to consideration of the measure was rejected by voice vote in the Senate on May 13, 2026. This suggests the bill did not advance to further floor consideration in that session.

The Joint Resolution would have immediate effect upon enactment, rendering the disapproved rule void.

Additional Context

The structure and wording align with the Congressional Review Act process, which allows Congress to disapprove a federal agency rule through a joint resolution (passed by both chambers and signed by the President, or bypassing after a veto via veto-proof margins).

The bill names a specific Federal Register notice for the Circular and the withdrawal rule, providing a precise regulatory target.

If you’d like, I can provide a plain-language quick guide explaining how a Congressional Review Act joint resolution works, and how this particular disapproval would interact with the CFPB’s regulatory framework.