Congress moves to restore CFPB rule blocking unfair contract terms
S.J.Res. 128 — 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". · Filed by Catherine Cortez Masto (D-NV) · Introduced Mar 17, 2026 · Reported out
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What it does
This resolution uses the Congressional Review Act to block a CFPB action that withdrew a consumer-protection rule (Circular 2024-03 on unlawful contract terms). By disapproving the withdrawal, Congress restores the rule, meaning the CFPB must keep the protections in place that bar companies from using certain unfair or unenforceable contract clauses against consumers.
Why we flagged it
This is a Congressional Review Act disapproval resolution that restores a CFPB consumer-protection rule by blocking an agency withdrawal. It is a procedural instrument of legislative oversight, not a substantive policy bill, but its functional effect is to reinstate consumer protections.
What the text implies
- If passed, this resolution would lock Circular 2024-03 in place and prevent the CFPB from withdrawing it again without new congressional action, shifting the burden of reversal to the agency's political opponents.
- The resolution does not specify what Circular 2024-03 contains; its scope and specific protections depend entirely on the referenced Federal Register notices (89 FR 51955 and 90 FR 20084), which are not reproduced in this text.
The full analysis lists 3 implications of this text.
Who it affects
Restoring Circular 2024-03 preserves CFPB enforcement authority against unfair contract terms, protecting consumers from predatory clauses in financial products and services. The rule blocks companies from using unenforceable or unlawful contract language that would otherwise shift risk or liability to consumers.