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 2023-02: Reopening Deposit Accounts That Consumers Previously Closed".
- Sponsor
- Rep. Meeks, Gregory W. [D-NY-5]
- Committees
- Financial Services Committee (primary)
- Last action
- May 4, 2026
Bottom line
This resolution seeks to reverse a CFPB decision, forcing the agency to reinstate its guidance on how financial institutions should handle the reopening of previously closed deposit accounts.
What it actually does
This joint resolution utilizes the Congressional Review Act (CRA) to disapprove a rule issued by the Bureau of Consumer Financial Protection (CFPB). Specifically, it targets the CFPB's rule from May 12, 2025, which withdrew its own prior guidance, Circular 2023-02, concerning the reopening of deposit accounts. If enacted, this resolution would nullify the CFPB's withdrawal rule, effectively reinstating Circular 2023-02.
Proponents argue
Supporters of this resolution argue that the CFPB's withdrawal of Circular 2023-02 removed important consumer protections or created regulatory uncertainty for financial institutions. They contend that the original circular provided necessary clarity and safeguards regarding the reopening of deposit accounts, ensuring fair treatment for consumers and consistent practices across the industry. Reinstating the circular would uphold the CFPB's initial intent to protect consumers in these specific financial transactions.
Opponents contend
Opponents of this resolution, aligning with the CFPB's decision to withdraw the circular, would argue that the agency acted within its authority to refine its guidance. They might contend that Circular 2023-02 was either unnecessary, overly burdensome for financial institutions, or that its objectives could be achieved through existing regulations or alternative means. They may also argue against congressional interference in the technical rulemaking and guidance processes of expert agencies like the CFPB.
The bill text is extremely short and clear, allowing for quick comprehension of its direct action. The complexity lies in understanding the underlying CFPB rules it references.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves...
Congressional Disapproval of CFPB Rule Withdrawal
This provision states that Congress disapproves of the rule submitted by the Bureau of Consumer Financial Protection (CFPB) on May 12, 2025, which withdrew its previous guidance known as "Consumer Financial Protection Circular 2023-02: Reopening Deposit Accounts That Consumers Previously Closed." By disapproving this withdrawal rule, the resolution aims to nullify the CFPB's action, thereby making the original Circular 2023-02 effective again.
Supporters argue
Supporters argue that the original Circular 2023-02 provided essential clarity and consumer safeguards regarding the reopening of deposit accounts, preventing potentially unfair practices or confusion. They believe its reinstatement is crucial for maintaining a robust consumer protection framework in this area.
Critics contend
Opponents contend that the CFPB's decision to withdraw the circular was a legitimate exercise of its regulatory authority, perhaps based on updated assessments of its necessity or impact. They might argue that the original circular imposed unnecessary burdens or was redundant with other existing regulations, and that Congress should not interfere with the agency's judgment.
Tradeoffs
This provision highlights the tension between congressional oversight and the administrative autonomy of regulatory agencies. It also balances the desire for specific consumer protections against concerns about regulatory burden on financial institutions and the flexibility of agencies to adapt their guidance.