If the House passes the measure, it is unlikely the Senate would follow suit since opponents of CFPB regulation do not have the 60 votes needed to pass bills that would decrease the agency's powers.

Rep. Trey Hollingsworth (R-Ind.) said his legislation would make it easier for consumers to obtain short-term loans from banks and credit unions rtaher than "darker, more expensive options."

"This is about offering choice to consumers," he said.

However, House Financial Services ranking Democrat Maxine Waters (D-Calif.) said the CFPB's payday lending rule is "sensible and much-needed."

But Rep. Blaine Luetkemeyer (R-Mo.), chairman of the Financial Institutions subcommittee said there is a legitimate need for access to such services.

"It is important that people have an alternative," he said.

The Financial Services Committee has been marking up small pieces of Chairman Jeb Hensarling's Financial CHOICE Act, in an effort to convince the Senate to accept some of its proposals.

The House and Senate have passed their respective bills to overhaul Dodd-Frank. The more modest Senate bill had bipartisan support and there had been speculation that the House simply would accept the Senate measure.

However, Hensarling has made it clear that the Senate bill does not go far enough and that he would not be willing to push a conference agreement that did not include parts of the House-passed legislation.

And his committee has continued to mark up smaller bills.

Meanwhile, the Government Accountability Office has suggested that one way to encourage more low-and moderate-income people to approach traditional financial institutions for short-term credit would be to include credit unions in the Community Investment Act.

The CRA requires banking regulators to conduct tests at banks to determine the extent to which they are meeting the needs of their communities.

The Treasury Department is examining changes to the CRA. However, expanding its scope to include credit unions would require legislation from Congress.

Traditionally, banks have favored expanding the scope of CRA requirements to credit unions, while credit unions have opposed it, arguing that since they are owned by their members, they automatically serve their communities.