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SJRES-128Senate2026-04-27Finance and Financial Sector

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".

YourVoice.Now SummaryAverage Household ImpactCivil LibertiesCorporate Benefits

This resolution invokes Congress's power under the Congressional Review Act (CRA) to void the Consumer Financial Protection Bureau's (CFPB) May 2025 decision to withdraw its 2024 guidance on unlawful and unenforceable contract terms. The original CFPB circular told financial companies that certain fine-print clauses — including mandatory arbitration requirements and liability waivers — are unenforceable against consumers. If enacted, the CFPB's withdrawal rule has no force or effect, restoring the circular and the agency's authority to take enforcement action against companies that include those prohibited terms in consumer financial contracts. This affects anyone with a bank account, credit card, or loan whose fine print contains clauses limiting their right to sue.

Average Household Impact

  • CFPB bar on unlawful consumer contract clauses — withdrawn guidance reinstated, restoring enforcement against prohibited fine-print terms

Civil Liberties

  • Consumer access to civil courts — mandatory arbitration clauses in financial contracts reinstated as unenforceable under restored CFPB guidance

Corporate Benefits

  • Financial company ability to enforce mandatory arbitration and liability-waiver terms in consumer contracts — CFPB circular restored

Congressional Summary

This joint resolution reinstates the Consumer Financial Protection Bureau’s (CFPB’s) guidance on unlawful and unenforceable contract terms published in a June 2024 circular. The circular states that consumer financial service providers that include unlawful or unenforceable terms in contracts with consumers (such as a contract that contains an unlawful waiver of the consumer’s right to sue) may be in violation of the Consumer Financial Protection Act's ban on deceptive acts or practices.The CFPB withdrew this circular on May 12, 2025. This joint resolution disapproves of the rule that withdraws this circular.

Details

Congress
119th
Chamber
Senate
Status
summarized
Action
Placed on Senate Legislative Calendar under General Orders. Calendar No. 384.
Action Date
2026-04-27
Date Added
2026-04-23
Source
Congress.gov →

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