A bipartisan group of congressional representatives introduced a resolution to overturn the Consumer Financial Protection Bureau's ("CFPB") recently adopted "Payday, Vehicle Title, and Certain High-Cost Installment Loans" rule. The rule limits certain "payday" loans by requiring lenders to test a borrower's ability to repay before providing a loan that would obligate the borrower to repay all or most of the debt at once, among other requirements.
The bill is sponsored by Representative Dennis Ross (R-FL) and co-sponsored by Representatives Alcee Hastings (D-FL), Tom Graves (R-GA), Henry Cueller (D-TX), Steve Stivers (R-OH) and Collin Peterson (D-MN). The resolution attempts to stop the rule using the same Congressional Review Act authority ( recently used to block the implementation of the CFPB's mandatory arbitration rule, see previous coverage). Under the Congressional Review Act, if the relevant committee in either chamber of Congress submits a joint resolution disapproving of an agency rule, then the rule can be overturned by a simple majority vote in Congress within 60 legislative days of finalization.
Representative Ross said that the rule will detrimentally impact citizens who rely on small-dollar lending "to make ends meet" and claimed that the CFPB usurped state authority by adopting the rule:
"I and my colleagues in Congress cannot stand by while an unaccountable federal agency...