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 withdrawal of the rule relating to "Consumer Financial Protection Circular 2024-05: Improper Overdraft Opt-In Practices".

Summary of SJRES 130 (119th Congress)

Purpose

• This joint resolution provides for Congress’s disapproval of a final rule issued by the Bureau of Consumer Financial Protection (BCFP) withdrawing a prior rule. Specifically, it targets the withdrawal of the rule described as “Consumer Financial Protection Circular 2024–05: Improper Overdraft Opt-In Practices.”
• If enacted, the rule referenced in the resolution would have no force or effect.

Key Provisions

• Congress disapproves the BCFP withdrawal of the rule relating to “Consumer Financial Protection Circular 2024–05: Improper Overdraft Opt-In Practices.”
• The effective date provision states that once the resolution is enacted, the referenced withdrawal rule shall have no force or effect.

Affected Parties and Provisions

• Affected: The Bureau of Consumer Financial Protection, financial institutions subject to CFPB oversight, and consumers affected by overdraft practices.
• Practical effect: Restores or maintains the integrity of the original rule framework surrounding “Improper Overdraft Opt-In Practices” by negating the withdrawal action.

Procedural and Timeline Details

• Introduction and sponsors: Introduced in the Senate by Senator Van Hollen, with a co-sponsor listed as Chris Van Hollen.
• Committee process: Referred to the Senate Committee on Banking, Housing, and Urban Affairs; discharged by petition under 5 U.S.C. 802(c) and placed on the Senate Legislative Calendar.
• Action history:
  • March 18, 2026: Introduced and referred to committee.
  • April 27, 2026: Committee discharged by petition and placed on the calendar (Calendar No. 386).
  • May 13, 2026: Motion to proceed to consideration rejected in the Senate (47 yeas, 53 nays; Record Vote No. 123).
• Legislative mechanism: The bill uses the Congressional disapproval process under chapter 8 of title 5, United States Code (the Congressional Review Act framework) to overturn the agency’s withdrawal rule.

Context and Impact Considerations

• The underlying policy issue centers on consumer protection regarding overdraft practices, specifically the process by which consumers opt into overdraft services.
• If the resolution becomes law, the Bureau’s withdrawal of the 2024 circular would be blocked, and the rule withdrawal would not take full effect, thereby preserving the prior regulatory stance or requiring further agency action to modify it.
• The outcome affects regulatory certainty for financial institutions implementing overdraft policies and for consumers seeking protections against improper or unclear opt-in practices.

Overall Assessment

• SJRES 130 is a targeted use of the Congressional Review Act to disapprove a specific agency withdrawal action and to maintain or restore the regulatory framework associated with disposable overdraft opt-in protections as framed by the 2024 circular. The bill would have the practical effect of nullifying the withdrawal and restoring the prior regulatory posture unless Congress later acts differently.