Consumer Financial Protection Accountability and Reform Act of 2026
Sponsored By: Representative Barr, Andy [R-KY-6]
Introduced
Summary
Reforms the Consumer Financial Protection Bureau's rulemaking, oversight, and supervision. The bill would tighten transparency and cost‑benefit checks on rulemaking, raise supervisory thresholds for banks and credit unions, and set national rules for earned wage access while narrowing some enforcement paths.
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- Households would get new rules for Earned Wage Access that treat early wage access as not credit, require disclosures and privacy safeguards, ban default tips, and bar discriminatory practices. The bill also orders a GAO study of Buy‑Now‑Pay‑Later markets and disclosures with a report due in 1 year.
- Banks and credit unions face a higher supervisory threshold rising from $10 billion to $30 billion with routine indexing every five years. Insured depository institutions and insured credit unions may elect to be supervised by their prudential regulator instead of the Bureau, with certain exceptions for systemically important affiliates.
- Rulemaking and enforcement would face added checks. OMB must review major rules within 8 years and non‑major rules within 10 years with public comment and written responses. The bill creates a standalone Bureau Inspector General, changes civil penalty flows to pay victims first, and requires detailed cost‑benefit and small‑entity analyses for new rules.
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 4 benefits, 0 costs, 5 mixed.
Bureau funding and inspector general change
If enacted, the Bureau would be moved onto the regular annual appropriations process rather than automatic funding tied to section 1017. The bill would also require the President to appoint a standalone Inspector General for the Bureau within 60 days and make that IG the point of transfer for pending audits and investigations once confirmed. These changes would shift oversight and budget processes for the agency.
Higher bank supervision thresholds
If enacted, the Bureau's asset threshold for supervising banks and credit unions would rise to $30 billion upon enactment. The Bureau must list every asset-based threshold in its rules within one year and immediately adjust them for inflation. Beginning with a determination by April 1, 2031 and every five years after, thresholds can increase based on a GDP ratio. Insured banks and credit unions could also elect supervision under a different statutory section by notifying regulators. The bill adds procedures to coordinate enforcement with prudential regulators and a backstop if those regulators do not act within 120 days.
Limits on CFPB authority over insurers
If enacted, the Bureau would be limited in enforcing this title against persons regulated by a State insurance regulator when they are engaged in the business of insurance. The bill directs that enforcement be construed to favor State insurance regulator authority. This change shifts more regulatory control over insurance-related consumer financial activities to state regulators.
New protections for pay‑early services
If enacted, companies that let you get pay early (earned wage access) would not be treated as creditors for these advances and must follow new consumer rules. Providers would give clear pre-contract and pre-disbursement disclosures, offer a no-cost transfer option whenever a fee option exists, and make no-cost transfers within one business day if chosen. Providers could not sue, use debt collectors, or sell expected wages to collect fees (except when a consumer knowingly lied). The bill also bans employer revenue‑sharing, requires reimbursement for overdraft fees caused by an earlier or different debit attempt, and requires clear tip disclosures and no cancellation penalties for recurring services.
Carveout for lawyers' litigation work
If enacted, licensed attorneys and law firms would not be treated as 'debt collectors' under the Fair Debt Collection Practices Act when they are engaged in litigation activities to collect a debt for a client. Federal agencies would be barred from supervising or enforcing against those litigation activities, and private federal civil actions for harms arising from opposing counsel's litigation activities would be limited. The bill defines litigation activities and sets the carveout rules.
New rules for Bureau rulemaking
If enacted, the Bureau would have to publish much more analysis when it proposes new rules. Notices would list goals, legal authority, key performance indicators, and quantitative and qualitative cost-benefit and small-entity analyses. OMB would review major Bureau rules about 8 years after they start and non-major rules about 10 years, with public comment and possible amendments or repeal if net benefits are not shown. The Bureau must consult prudential, state, and Tribal regulators and publish certain proposed drafts at least 60 days before a public proposal.
Safe harbor for small‑dollar loans
If enacted, lenders that offer 'small‑dollar' loans meeting the bill's rules would get a legal safe harbor from certain penalties and some TILA damages. The safe harbor applies when loans are at or below $3,500 (adjusted for inflation starting Jan 1, 2028) and meet requirements like repayment terms longer than 45 days, amortization across payments, limits on rollovers, caps on balloon payments, no prepayment penalties, and timely disbursement within 5 days. The rules also limit certain single-payment draws on lines of credit relative to deposits and a percentage cap.
Limits and rules for CFPB enforcement
If enacted, the bill would narrow how and when the Bureau and states may bring enforcement actions. Unfair, deceptive, or abusive (UDA) claims would be tied to other federal law deadlines and the Bureau could not start abusive-based enforcement until it issues a defining rule and completes public comment. The Bureau would face new venue and pleading limits, a 90‑day notice and 180‑day cure process for self-reports, and a statutory good‑faith defense against some monetary relief. Civil penalties would first pay victims, then leftover amounts would go to the Treasury, and a cited penalty figure would be replaced by $50,120 with self-reporting as a mitigation factor. The Bureau would also shield certain market-monitoring information from use in enforcement and require verification for consumer complaint filings.
GAO study of buy‑now‑pay‑later
If enacted, the U.S. Government Accountability Office would study buy now, pay later services and report to Congress within one year. The study must look at market size, how many banks versus nonbanks participate, disclosures and readability, fraud risks, repayment patterns, debt accumulation compared with other credit, and other enumerated topics. For the study, BNPL is defined narrowly as a point-of-sale installment plan without interest or finance charges.
Sponsors & CoSponsors
Sponsor
Barr, Andy [R-KY-6]
KY • R
Cosponsors
Rep. Hill, J. French [R-AR-2]
AR • R
Sponsored 8/31/2026
Rep. Lucas, Frank D. [R-OK-3]
OK • R
Sponsored 8/31/2026
Rep. Sessions, Pete [R-TX-17]
TX • R
Sponsored 8/31/2026
Rep. Huizenga, Bill [R-MI-4]
MI • R
Sponsored 8/31/2026
Rep. Wagner, Ann [R-MO-2]
MO • R
Sponsored 8/31/2026
Rep. Williams, Roger [R-TX-25]
TX • R
Sponsored 8/31/2026
Emmer
MN • R
Sponsored 8/31/2026
Rep. Loudermilk, Barry [R-GA-11]
GA • R
Sponsored 8/31/2026
Rep. Davidson, Warren [R-OH-8]
OH • R
Sponsored 8/31/2026
Rep. Rose, John W. [R-TN-6]
TN • R
Sponsored 8/31/2026
Rep. Steil, Bryan [R-WI-1]
WI • R
Sponsored 8/31/2026
Rep. Timmons, William R. [R-SC-4]
SC • R
Sponsored 8/31/2026
Rep. Stutzman, Marlin A. [R-IN-3]
IN • R
Sponsored 8/31/2026
Rep. Meuser, Daniel [R-PA-9]
PA • R
Sponsored 8/31/2026
Rep. Kim, Young [R-CA-40]
CA • R
Sponsored 8/31/2026
Rep. Donalds, Byron [R-FL-19]
FL • R
Sponsored 8/31/2026
Rep. Garbarino, Andrew R. [R-NY-2]
NY • R
Sponsored 8/31/2026
Rep. Fitzgerald, Scott [R-WI-5]
WI • R
Sponsored 8/31/2026
Rep. Flood, Mike [R-NE-1]
NE • R
Sponsored 8/31/2026
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 8/31/2026
Rep. De La Cruz, Monica [R-TX-15]
TX • R
Sponsored 8/31/2026
Rep. Nunn, Zachary [R-IA-3]
IA • R
Sponsored 8/31/2026
Rep. McClain, Lisa C. [R-MI-9]
MI • R
Sponsored 8/31/2026
Rep. Salazar, Maria Elvira [R-FL-27]
FL • R
Sponsored 8/31/2026
Rep. Downing, Troy [R-MT-2]
MT • R
Sponsored 8/31/2026
Rep. Haridopolos, Mike [R-FL-8]
FL • R
Sponsored 8/31/2026
Rep. Moore, Tim [R-NC-14]
NC • R
Sponsored 8/31/2026
Rep. Norman, Ralph [R-SC-5]
SC • R
Sponsored 8/31/2026
Rep. Ogles, Andrew [R-TN-5]
TN • R
Sponsored 8/31/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov