Congress moves to restore consumer protections against unlawful contracts
H.J.Res. 185 — 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". · Filed by Juan Vargas (D-CA) · Introduced May 13, 2026 · Referred to committee
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What it does
This resolution uses Congress's disapproval power to block a CFPB action that withdrew a consumer-protection rule. The CFPB had rescinded its 2024 guidance on unlawful contract terms; this resolution voids that rescission, restoring the consumer protections. If passed, the CFPB's withdrawal order becomes unenforceable and the original rule stands.
Why we flagged it
This is a Congressional Review Act disapproval resolution that restores a consumer-protection rule by voiding the CFPB's withdrawal of it. The mechanism is procedural and transparent; the effect is to reinstate protections against unlawful contract terms.
What the text implies
- Restoring Circular 2024-03 may increase litigation risk for financial services firms and other businesses using contract terms the CFPB deems unlawful, potentially raising compliance costs.
- The resolution does not define what constitutes an 'unlawful and unenforceable' contract term—that definition lives in the restored Circular itself, which is not quoted in this text.
The full analysis lists 3 implications of this text.
Who it affects
Ordinary consumers gain enforceable protections against unlawful and unenforceable contract terms. The resolution restores a rule that shields consumers from predatory or one-sided contractual language, strengthening their bargaining position and legal remedies.