CFPB Prepaid Card Rule Expected to Survive CRA Challenge

Congress could have blocked the rule using the Congressional Review Act, but the deadline for the Senate vote appears to be tomorrow and it looks like the Senate won't get to it, and that even if it did, it might not pass. Bloomberg and American Banker have reports. Here's an excerpt from the American Banker story:

In the end, it appears Congress didn't have the appetite to reject the prepaid regulation, which a Senate Republican staffer said was partly due to an extensive ad campaign by progressive groups.

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However, [Senator David] Perdue [who tried to block the rule] issued a warning Tuesday to the CFPB that he would be willing to use the Congressional Review Act in the future if the agency were to promulgate other controversial rules.

"The Congressional Review Act process was an important tool to inject some oversight of this rogue agency, and something we will utilize again to rein in future overreaching rules," said Perdue.


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