Us Congress House Bill HJR195

Us Congress 2023-2024 Regular Session

• Introduced: 8/2/24
• Refer: 8/2/24

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 "Truth in Lending (Regulation Z); Use of Digital User Accounts to Access Buy Now, Pay Later Loans".

Impact

If passed, HJR195 would eliminate the requirements set out by the CFPB that govern the use of digital accounts in loan processes. This could significantly affect consumer rights and protections associated with BNPL loans, as it would repeal measures intended to increase transparency in lending practices. The resolution reflects an ongoing debate about the role of federal regulations in consumer finance, especially in emerging financial service areas like BNPL lending.

Summary

HJR195 is a joint resolution aimed at disapproving a rule issued by the Bureau of Consumer Financial Protection (CFPB) regarding 'Truth in Lending (Regulation Z); Use of Digital User Accounts to Access Buy Now, Pay Later Loans.' This rule, published on May 31, 2024, outlines regulations concerning how digital user accounts can be utilized for accessing Buy Now, Pay Later (BNPL) loan options. The joint resolution seeks to negate the CFPB's authority to enforce this rule, indicating a legislative push to reject increased regulatory oversight in the lending space.

Contention

The bill reflects a division in approaches to consumer financial protection, with proponents arguing that the CFPB's regulations might impose overly burdensome compliance requirements on financial service providers. Conversely, opponents of the resolution may argue that eliminating these regulations could lead to consumer exploitation, as it diminishes safeguards meant to protect borrowers from deceptive lending practices. Additionally, there could be concerns about the broader implications of forgoing regulation in the fast-evolving digital finance landscape.