S.jres36 - 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 Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V). (119th Congress)
Summary
This document is a joint resolution (S.J. Res. 36) introduced in the Senate during the 119th Congress. It aims to disapprove a rule submitted by the Bureau of Consumer Financial Protection (BCFP) concerning the prohibition on creditors and consumer reporting agencies regarding medical information, specifically Regulation V. The resolution cites chapter 8 of title 5, United States Code, as the basis for congressional disapproval.
The resolution targets a specific rule published in the Federal Register (90 Fed. Reg. 3276) on January 14, 2025. If passed, the resolution would nullify the BCFP's rule, preventing it from taking effect.
The resolution was introduced by Mr. Rounds, along with several co-sponsors, and referred to the Committee on Banking, Housing, and Urban Affairs.
Expected Effects
If the resolution passes both the Senate and the House and is enacted, the BCFP rule regarding the use of medical information by creditors and consumer reporting agencies would be invalidated. This would mean that the prohibitions outlined in Regulation V would not be enforced.
Creditors and consumer reporting agencies might then have greater latitude in using medical information in their decision-making processes. The practical effect would depend on the extent to which the BCFP rule restricted practices that these entities would otherwise engage in.
Potential Benefits
- Could reduce compliance costs for creditors and consumer reporting agencies, potentially leading to lower costs for consumers.
- May allow for more comprehensive risk assessment by creditors, potentially leading to increased access to credit for some individuals.
- Could streamline processes for creditors and consumer reporting agencies by removing regulatory hurdles.
- Might foster innovation in the financial sector by reducing regulatory constraints.
- Could align with a broader deregulatory agenda, potentially stimulating economic activity.
Most Benefited Areas:
Potential Disadvantages
- Could lead to potential misuse or discrimination based on medical information by creditors and consumer reporting agencies.
- May erode consumer privacy protections regarding sensitive medical data.
- Could disproportionately harm individuals with pre-existing medical conditions or disabilities.
- Might undermine the BCFP's authority to protect consumers from unfair or deceptive practices.
- Could create uncertainty in the financial marketplace regarding the use of medical information.
Most Disadvantaged Areas:
Constitutional Alignment
The resolution's constitutional alignment stems from Congress's legislative powers as outlined in Article I, Section 1, which vests all legislative powers in the Congress. Furthermore, the Congressional Review Act, under which this resolution is brought, is a mechanism by which Congress can check the power of executive agencies, aligning with the principle of separation of powers.
However, the specific rule being targeted (Regulation V) would need to be examined to determine if it exceeds the BCFP's delegated authority or infringes upon individual rights. If the rule is deemed to be within the BCFP's authority and protects consumer rights, then disapproving it might be seen as undermining the Constitution's aim to "promote the general Welfare".
Ultimately, the constitutional alignment depends on the specifics of Regulation V and whether it is a valid exercise of executive power and whether it infringes on individual liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).