Congress moves to restore payday lending protections CFPB quietly killed
S.J.Res. 156 — 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 "Truth in Lending (Regulation Z); Consumer Credit Offered to Borrowers in Advance of Expected Receipt of Compensation for Work". · Filed by Jeff Merkley (D-OR) · Introduced Mar 26, 2026 · Reported out
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This resolution uses the Congressional Review Act to block a CFPB rule that withdrew consumer protections for payday lending. The CFPB had rescinded a 2017 rule requiring lenders to verify borrowers' ability to repay before offering short-term loans. This resolution disapproves that withdrawal, which restores the consumer protections and requires lenders to check repayment capacity.
Why we flagged it
The bill's sole function is to invoke the Congressional Review Act to disapprove a CFPB withdrawal, thereby restoring a 2017 consumer-protection rule requiring payday lenders to verify borrowers' ability to repay. This is a straightforward legislative reversal of a deregulatory action.
What the text implies
- If passed, this resolution would reinstate mandatory ability-to-repay verification for payday lenders, potentially reducing the volume of high-cost short-term loans issued to vulnerable borrowers and limiting lender revenue from repeat borrowing cycles.
- The resolution's success depends on whether it reaches a floor vote and survives a presidential veto; under the CRA, the CFPB cannot reissue a substantially similar rule without new congressional authorization.
The full analysis lists 3 implications of this text.
Who it affects
Ordinary borrowers regain legal protections requiring payday lenders to verify ability to repay before issuing loans, reducing exposure to debt traps and predatory lending. The restoration of this rule directly protects vulnerable consumers from high-cost short-term credit.