Bank Accounts: Preventing Banks from Reopening Closed Accounts
A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2023-02: Reopening Deposit Accounts That Consumers Previously Closed".
This bill is currently in the early stages of the legislative process. It has been sent to the Senate Committee on Banking, Housing, and Urban Affairs for review. No further actions are scheduled at this time.
Legislative Progress
Key Points
- Sen. Whitehouse introduced a plan to stop a recent change by the Consumer Financial Protection Bureau. The change would have made it easier for banks to reopen accounts that customers had already closed.
- When banks reopen closed accounts without a customer's knowledge, it often leads to surprise fees. These can include monthly service charges or fees for automatic payments that the customer thought were stopped.
- This resolution aims to keep a 2023 consumer protection rule active. That rule warned banks they could be breaking the law if they reopened accounts and charged fees without a customer's permission.
- If this measure passes, the agency's attempt to cancel these protections would be blocked. This would ensure that a closed account stays closed unless the customer specifically asks to open it again.
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in Senate
Source Information
Document Type
Congressional Bill
Official Title
A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2023-02: Reopening Deposit Accounts That Consumers Previously Closed".
Data Sources
Sponsor
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