This resolution would reject a regulation finalized by the Consumer Financial Protection Bureau on December 6, 2017 targeting indirect loans offered by car dealerships. The rule was proposed in the form of a guidance by the CFPB in 2013, but in December 2017 the Government Accountability Office found that it qualified as a regulation and had to be submitted formally as a regulation, thus giving Congress the opportunity to review. The rule allowed regulators to impose controls on auto lenders related to dealer markups (ie additional interest on the car loan as compensation to the seller) to prevent discrimination in pricing for prohibited reasons, such as race.
Under the Congressional Review Act, Congress is able to overturn regulations finalized within the last 60 legislative days with simple majority votes on a joint resolution of disapproval in both chambers and the president’s signature. CRA resolutions also prevent the federal agency that created the regulation from issuing a similar rule without being directed to do so by Congress.