H.R. 3213 Gains Momentum in Congress
Restoring Court Authority Over Litigation Act Included in House CFPB Reform Package as Rep. Fitzgerald Presses for Congressional Action
Last week, Russell Vought, Acting Director of the Consumer Financial Protection Bureau (CFPB), appeared before Congress on, Wednesday, July 15, 2026, at 10:00 am (ET) for one of the Bureau's regularly scheduled oversight hearings. During the hearing, Representative Scott Fitzgerald (R-WI) highlighted H.R. 3213, the Restoring Court Authority Over Litigation Act, as part of a broader discussion about establishing clearer limits on CFPB authority and preventing future regulatory overreach.
Rep. Fitzgerald emphasized concerns with what he described as the CFPB's past reliance on "vague statutory authority, regulation by enforcement, and expansive interpretations of its powers instead of having some clear rules and limits in place." In discussing H.R. 3213, he noted that the legislation would "clarify that conduct of attorneys in litigation is regulated by the courts and not the CFPB," and asked Acting Director Vought how important it is for Congress to establish clear jurisdictional boundaries to prevent future administrations from expanding the Bureau's authority beyond its intended scope.
In response, Acting Director Vought agreed that Congress should play a central role in defining those limits, stating that "clear boundaries need to be set by Congress" to ensure that future CFPB administrations do not continue operating in what he characterized as "novel statutory theory" enforcement areas.
Rep. Fitzgerald's focus on H.R. 3213 firmly places the legislation in the congressional record and elevates its visibility as policymakers continue to evaluate reforms to the CFPB. His comments underscore a growing interest among lawmakers in clarifying the respective roles of courts, federal agencies, and legal practitioners.
Adding to this momentum, House Financial Services Committee Chairman French Hill's team has developed a broader CFPB reform package that was highlighted during the hearing. H.R. 3213 is included in that package (Section 204, Page 32, Line 18).
Inclusion in a comprehensive reform package signals that congressional leadership views the legislation as an important component of CFPB reform and substantially increases the likelihood that it could receive committee consideration and advance through the House later this year. It also sends a strong signal to future CFPB leadership that reforming the Bureau's approach to attorney litigation activity remains a congressional priority.
About H.R. 3213
The Restoring Court Authority Over Litigation Act is narrowly focused on reaffirming a longstanding legal principle: courts, not federal agencies, should regulate and discipline attorneys engaged in litigation.
State supreme courts and the judicial system already maintain extensive ethical rules, disciplinary procedures, and enforcement mechanisms governing attorney conduct. H.R. 3213 clarifies that litigation-related attorney activities remain under the authority of the courts while preserving federal oversight of non-litigation debt collection activities, including consumer communications, validation notices, and telephone outreach.
The legislation has garnered support from a diverse group of stakeholders, including the Conference of Chief Justices, the American Bar Association, and the National Creditors Bar Association, all of which recognize the judiciary's longstanding role in regulating the practice of law.
We will continue to monitor developments and keep members informed as H.R. 3213 advances through the legislative process. Rep. Fitzgerald's public advocacy during the CFPB oversight hearing, combined with the bill's inclusion in Chairman Hill's broader reform package, marks an important step forward for the legislation and ongoing efforts to preserve clear jurisdictional boundaries between the courts and federal regulatory agencies.