Us Congress House Bill HJR121

Us Congress 2023-2024 Regular Session

• Introduced: 3/26/24
• Refer: 3/26/24

Caption

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 "Credit Card Penalty Fees (Regulation Z)".

Impact

If enacted, HJR121 would result in the disapproval of the Bureau's rule, effectively rendering it without force or effect. This action may lead to increased flexibility for credit card companies in setting penalty fees, which could potentially result in higher costs for consumers. The resolution reflects ongoing debates about the appropriate level of regulation in financial markets and the balance between consumer protection and industry interests. The impact on state laws may not be direct; however, it can influence the overall regulatory environment in which state-level consumer protection laws operate.

Summary

HJR121 provides for congressional disapproval of a rule submitted by the Bureau of Consumer Financial Protection pertaining to 'Credit Card Penalty Fees' under Regulation Z. This resolution indicates that Congress is exercising its authority to nullify a specific regulatory action that affects how financial institutions can impose penalties related to credit cards. The motivation behind HJR121 appears to stem from a desire to restrict or alter the regulatory framework that determines these fees, which has significant implications for consumers and credit card companies alike.

Contention

The main points of contention surrounding HJR121 revolve around consumer rights versus financial industry interests. Proponents of disapproval, likely including various financial institutions and their representatives, argue that reducing restrictions on penalty fees allows for more competitive practices and better services. Conversely, critics, including consumer advocacy groups, may argue that such disapproval undermines protections for consumers, potentially leading to increased financial burdens on individuals who fall behind on credit card payments. The tension between these perspectives highlights the broader debate on how best to regulate financial services to protect consumers while encouraging industry growth.