Congress Takes On Nonbank Registry Rule

Congress Takes On Nonbank Registry Rule

Last week, , Representative Andy Ogles (R-TN) introduced a Congressional Review Act (CRA) to the CFPB's nonbank registry rule related to enforcement. Representative Ogles has been highly supportive of the financial services industry and wrote in opposition to the registry when it was first proposed. Representative Ogles rightly 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." AFSA has been actively trying to educate the CFPB on the illogical rule and strongly supports the CRA.

A CRA is a 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 at issue cannot go into effect or continue in effect. The CRA has been used to overturn a total of 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 track the CRA closely.

September 4th, 2024