Bill > HR306

This bill, known as the Ending Scam Credit Repair Act (ESCRA), aims to strengthen protections against deceptive practices in the credit repair industry by amending the Credit Repair Organizations Act. The bill introduces several key provisions, including: redefining credit repair organizations to exclude certain legal services and good-faith entities; prohibiting knowingly making false statements to consumer protection agencies; restricting upfront fees by requiring credit repair organizations to demonstrate actual credit improvement before charging consumers; mandating specific disclosure requirements such as informing consumers that they can perform credit repair services for free; requiring organizations to maintain detailed records of communications and contracts; implementing new communication standards when disputing credit information, including mandatory identification of the credit repair organization and its state license; and establishing enhanced civil liability provisions that allow for $500 in damages per violation. Additionally, the bill will require credit repair organizations to be state-licensed starting January 1, 2026, and imposes stricter rules on submitting multiple credit disputes, ensuring that organizations only resubmit disputes with new, material information after a reasonable investigation period. These changes are designed to protect consumers from potential fraud and misrepresentation in the credit repair industry.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/306/all-info