Last week, Representative Andy Ogles (R-TN) introduced a Congressional Review Act (CRA) to address the Consumer Financial Protection Bureau’s (CFPB) nonbank registry rule related to enforcement. Representative Ogles has been a strong advocate for the financial services industry and expressed opposition to the registry when it was initially proposed. He stated that the “nonbank registry would impose severe and complex compliance measures on covered nonbank entities, including many small businesses. It’s an unnecessary, duplicative rule that pushes bureaucracy and costs onto the American people.” The American Financial Services Association (AFSA) has been actively working to educate the CFPB on what it considers an illogical rule and strongly supports the CRA.
A CRA is a legislative tool that Congress can use to overturn certain federal agency actions. If a CRA joint resolution of disapproval is approved by both houses of Congress and signed by the President, or if Congress successfully overrides a presidential veto, the rule in question cannot go into effect or continue in effect. Historically, the CRA has been used to overturn 20 rules: one in the 107th Congress (2001-2002), 16 in the 115th Congress (2017-2018), and three in the 117th Congress (2021-2022). AFSA appreciates Representative Ogles’ leadership and will monitor the progress of this CRA closely.
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