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 "Bulletin 2023-01: Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts".
- Sponsor
- Rep. Bynum, Janelle S. [D-OR-5]
- Committees
- Financial Services Committee (primary)
- Last action
- May 12, 2026
Bottom line
The resolution uses the Congressional Review Act to reverse a CFPB decision, aiming to restore specific consumer protections for student loan borrowers whose debts were discharged in bankruptcy.
What it actually does
This joint resolution seeks to nullify a rule issued by the Bureau of Consumer Financial Protection (CFPB) that withdrew "Bulletin 2023-01: Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts." If enacted, it would effectively reinstate Bulletin 2023-01, preventing financial institutions from engaging in certain billing and collection practices for student loans that have been discharged through bankruptcy.
Proponents argue
Supporters of this resolution argue that the CFPB's withdrawal of Bulletin 2023-01 weakened crucial protections for student loan borrowers who have successfully discharged their debts in bankruptcy. They contend that without the bulletin, these vulnerable individuals are susceptible to unfair and potentially illegal billing and collection practices by financial institutions, undermining the intent of bankruptcy discharge.
Opponents contend
Opponents of this resolution, aligning with the CFPB's decision to withdraw the bulletin, might argue that Bulletin 2023-01 was either unnecessary, overly burdensome for financial institutions, or redundant with existing consumer protection laws. They may assert that the withdrawal was a proper regulatory adjustment, allowing for more efficient operations without compromising essential consumer safeguards, or that the bulletin created legal ambiguities.
The bill is extremely short and can be read in under a minute, making it highly accessible for any reader to understand its direct legislative intent.
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 on Student Loan Debt Collection
This provision states that Congress disapproves of a specific rule issued by the Bureau of Consumer Financial Protection (CFPB) on May 12, 2025. This CFPB rule had withdrawn an earlier bulletin (Bulletin 2023-01) concerning unfair billing and collection practices for student loan debts discharged in bankruptcy. By disapproving the withdrawal, this resolution aims to effectively reinstate Bulletin 2023-01, thereby re-establishing its guidance on how financial institutions should handle such debts.
Supporters argue
Supporters argue that reinstating Bulletin 2023-01 is essential to prevent financial institutions from attempting to collect on student loan debts that have been legally discharged in bankruptcy. They believe the bulletin provides necessary clarity and protection for consumers against predatory or confusing practices, ensuring that the relief granted by bankruptcy courts is not undermined by aggressive collection efforts.
Critics contend
Opponents contend that the CFPB's withdrawal of Bulletin 2023-01 was a legitimate exercise of its regulatory discretion, possibly due to concerns about its scope, legal basis, or the burden it placed on servicers. They might argue that existing laws are sufficient to protect consumers and that reinstating the bulletin through congressional disapproval could create unnecessary regulatory complexity or stifle efficient debt management practices.
Tradeoffs
This provision navigates the tension between providing robust consumer protections for vulnerable borrowers post-bankruptcy and ensuring regulatory flexibility for financial institutions and the CFPB. It also highlights the balance of power between Congress and executive agencies in setting regulatory policy.