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Senate Passes CRA Disapproval Resolution Blocking 2013 CFPB Auto Guidance

Posted @ Monday, April 23, 2018    By Zach Israel
Posted in [ Clients Only, Recently in Washington ] | 0 Comments

On April 18, the Senate passed, by a vote of 51-47, a Congressional Review Act (CRA) disapproval resolution (S.J. Res. 57 ) to block Consumer Financial Protection Bureau (CFPB) guidance issued on March 21, 2013 that was meant to stop discriminatory markups on indirect loans made by car dealers. The CRA resolution was sent to the House, which is expected to pass it during the week of May 7 and send it to the President, who has indicated that he will sign it into law. The consequences of the vote will ripple beyond the confines of the CFPB, which is already on a deregulatory path under the leadership of Mick Mulvaney, Trump's White House budget chief and the acting CFPB Director. It was the first time the Senate has used its authority under the 1996 CRA to strike down an action taken by an agency years ago, instead of just within the narrow window prescribed by the law. The move also marked a broadening of how Congress has generally used the CRA to include regulatory guidance and not only formal agency rules that were recently issued. Sen. Pat Toomey (R-PA), who orchestrated the effort, was able to bring the CFPB guidelines under the scope of the CRA by asking the Government Accountability Office to determine that they amounted to a "rule" for the purposes of the law. Read more.

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