H.J.Res.74 - Disapproving 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
H.J.Res.74 is a joint resolution introduced in the House of Representatives aiming 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, also known as Regulation V. The resolution was introduced on March 6, 2025, and referred to the Committee on Financial Services. The primary effect of this resolution, if passed, would be to nullify the BCFP's rule.
This would allow creditors and consumer reporting agencies to potentially use medical information in ways that the BCFP rule sought to prevent. The resolution reflects a congressional check on the regulatory power of an executive agency.
Expected Effects
If H.J.Res.74 is enacted, the BCFP's rule prohibiting the use of medical information by creditors and consumer reporting agencies would be invalidated. This would permit these entities to consider medical information in their decision-making processes. The practical effect is a rollback of consumer protection measures related to medical privacy in financial contexts.
Potential Benefits
- Potentially reduces compliance costs for creditors and consumer reporting agencies.
- May allow for more nuanced risk assessment by creditors, potentially leading to more credit availability for some.
- Could streamline processes for financial institutions by removing restrictions on data usage.
- Reinforces congressional oversight of executive agency rulemaking.
- Promotes flexibility for businesses in how they assess creditworthiness.
Most Benefited Areas:
Potential Disadvantages
- Increases the risk of discrimination based on medical conditions.
- Could lead to higher costs of credit for individuals with certain medical histories.
- May erode consumer privacy regarding sensitive health information.
- Potentially undermines efforts to prevent unfair or deceptive practices in the financial industry.
- Could disproportionately affect vulnerable populations with chronic illnesses or disabilities.
Most Disadvantaged Areas:
Constitutional Alignment
The resolution aligns with the principle of checks and balances, as it represents Congress's attempt to oversee and potentially overturn a rule issued by an executive agency (the Bureau of Consumer Financial Protection). Article I, Section 1 of the Constitution vests all legislative powers in Congress, implying the power to review and approve or disapprove of regulations issued by executive agencies. However, the constitutionality of the underlying BCFP rule itself, and the extent of congressional authority to disapprove such rules, could be subject to judicial review.
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).