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".

Summary of Bill: HJRES 185 (119th Congress)

Purpose

• To disapprove a specific rule issued by the Bureau of Consumer Financial Protection (BCFP) under the congressional disapproval process in chapter 8 of title 5, United States Code.
• Specifically targets the withdrawal of a prior BCFP rule described as “Consumer Financial Protection Circular 2024–03: Unlawful and Unenforceable Contract Terms and Conditions.”

What the bill would do

• The joint resolution provides formal congressional disapproval of the BCFP rule related to the withdrawal of the rule on unlawful and unenforceable contract terms and conditions.
• If enacted, the rule in question would be void and have no force or effect.

Key provisions and changes

• The resolution states: Congress disapproves 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.”
• The referenced rule is identified as:
  • The withdrawal of the earlier rule published as Consumer Financial Protection Circular 2024–03: Unlawful and Unenforceable Contract Terms and Conditions (appearing in the Federal Register as 89 Fed. Reg. 51955 on June 21, 2024; and the withdrawal rule published as 90 Fed. Reg. 20084 on May 12, 2025).
• The text indicates the disapproval would render the rule without force or effect.

Who/what is affected

• The BCFP rule regarding the withdrawal of Circular 2024–03: Unlawful and Unenforceable Contract Terms and Conditions.
• The effect would primarily be on regulatory guidance and compliance expectations surrounding contract terms and conditions that are deemed unlawful or unenforceable, as previously articulated in Circular 2024–03 and the subsequent withdrawal rule.

Procedural and timeline aspects

• The bill is introduced in the House (May 13, 2026) by Mr. Vargas, with a co-sponsor listed as Juan Vargas.
• It has been referred to the House Committee on Financial Services.
• As a joint resolution under the congressional disapproval process (chapter 8 of title 5, U.S.C.), passage would send a disapproval to the rule, removing it from effect if enacted. This process is separate from normal statutory revision and typically does not require a presidential signature if both chambers pass the resolution (though standard Senate passage and other procedural steps would apply).

Practical implications

• If enacted, federal regulatory guidance and any enforcement posture tied to the withdrawal rule would be halted, effectively reinstating or maintaining the status quo prior to the withdrawal rule, depending on how the courts and agencies interpret the disapproval.
• Stakeholders affected may include financial services providers, legal practitioners dealing with consumer contract terms, and industry observers monitoring BCFP regulatory actions and guidance on contract terms.

Notes

• The bill is focused narrowly on disapproving a single BCFP rule related to the withdrawal of Circular 2024–03.
• The text does not indicate broader changes to BCFP authorities or other circulars beyond this disapproval.