Us Congress Senate Bill SJR70

Us Congress 2023-2024 Regular Session

• Introduced: 4/8/24
• Refer: 4/8/24

Caption

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 "Credit Card Penalty Fees (Regulation Z)".

Impact

If SJR70 is enacted, it would negate the Bureau's rule, effectively removing limits on credit card penalty fees that the regulation aimed to enforce. Supporters of the disapproval argue that the rule may impose unnecessary restrictions on financial institutions, potentially limiting their ability to offer credit and impacting the overall economy. The disapproval of this rule would revert the regulatory landscape to a more lenient framework regarding penalty fees, which could benefit credit card issuers but raise concerns for consumer advocacy groups regarding protection against excessive fees.

Summary

Senate Joint Resolution 70 (SJR70) is a congressional resolution that seeks to disapprove a specific rule implemented by the Bureau of Consumer Financial Protection regarding 'Credit Card Penalty Fees', as outlined in Regulation Z. The resolution was introduced in the Senate to provide a check against what some senators perceive as overreach by the Bureau, acting under Chapter 8 of Title 5 of the United States Code. This legislative action signifies a broader ongoing dialogue regarding consumer financial protections and the role of regulatory agencies in enforcing these provisions.

Contention

The main points of contention surrounding SJR70 involve balancing consumer protection with the flexibility afforded to financial institutions. Proponents of the resolution, mainly from the Republican side, frame their argument around the need for less restrictive regulations that promote business freedom and economic growth. In contrast, critics, including representatives from consumer advocacy groups, argue that repealing the penalty fee regulation undermines consumer rights and can lead to abusive practices by credit card companies, thus disproportionately impacting vulnerable populations.