Washington, DC – Today, U.S. Representatives Young Kim (CA-40) and Sarah McBride (DE-AL) introduced the Ending Scam Credit Repair Act (ESCRA) to combat fraudulent practices in the credit repair industry. The bill targets credit repair organizations (CROs) that exploit consumers by charging high fees without delivering on promises to improve credit scores. By strengthening CROs regulations, the bill will ensure transparency and accountability in the industry.
The bipartisan Ending Scam Credit Repair Act empowers consumers by ensuring that CROs only receive payment after delivering documented improvements to credit reports, while increasing civil penalties for violations.
“Fraudulent credit repair organizations, or CROs, should not get away with scamming hardworking Americans seeking to improve their scores and unlock their American dream,” said Congresswoman Young Kim. “The Ending Scam Credit Repair Act helps consumers and hikes penalties for scammers. I’m thrilled to introduce the bipartisan Ending Scam Credit Repair Act and will continue to work on commonsense policies that empower Americans of all backgrounds to grow their wealth and achieve their dream.”
“For too long the credit repair industry has been scamming Delawareans with low credit scores by promising easy credit fixes,” said Congresswoman Sarah McBride. “These CROs exploit legal loopholes to target cash-strapped Delawareans by charging large upfront fees based on false hopes of debt reduction. Our bipartisan bill eliminates those loopholes that have allowed predatory practices to flourish by banning upfront fees, improving transparency, and enhancing consumer protections. Delawareans deserve real results, not empty and costly promises. I am grateful to Congresswoman Kim for working across the aisle with me on common sense solutions to deliver for our constituents.”
