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".

Legislative Summary: S.J.Res. 128

Overview

S.J.Res. 128 is a joint resolution introduced in the United States Senate to void a specific action taken by the Bureau of Consumer Financial Protection (CFPB). The resolution seeks to prevent the CFPB from withdrawing a policy guidance known as Consumer Financial Protection Circular 2024-03, which addresses "Unlawful and Unenforceable Contract Terms and Conditions."

Purpose and Intent

The primary purpose of this resolution is to ensure that the guidelines established in Circular 2024-03 remain in effect.

The CFPB originally issued Circular 2024-03 to provide guidance on which contract terms in consumer agreements may be considered unlawful or unenforceable. If the CFPB attempts to withdraw this guidance (as noted in the referenced Federal Register notices), this resolution would use the Congressional Review Act (Chapter 8 of title 5, U.S. Code) to block that withdrawal, effectively forcing the original guidance to stay active.

Key Provisions

• Disapproves Rule Withdrawal: The resolution explicitly disapproves of the CFPB's rule to withdraw Circular 2024-03.
• Nullification: If passed, the rule attempting to withdraw the circular would have "no force or effect," meaning the original guidance on contract terms remains the standing interpretation.

Who is Affected?

• Financial Institutions and Businesses: Companies that draft consumer contracts would be affected, as they would still need to comply with the standards set forth in Circular 2024-03 regarding what constitutes an "unlawful" or "unenforceable" term.
• Consumers: This resolution aims to protect consumer rights by maintaining the CFPB's guidance on preventing unfair or deceptive terms in financial contracts.
• The CFPB: The agency's authority to rescind this specific piece of guidance would be blocked.

Procedural Status

• Introduced: March 17, 2026.
• Current Status: The bill has been read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summary Table