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Ending Credit Repair Scams: Pay Only for Documented Results After Six Months.

This Act significantly strengthens consumer protection against fraudulent credit repair organizations by banning upfront fees. Companies can only request payment after six months, provided they furnish a consumer report proving the promised credit improvement has been achieved. The law also mandates state licensing for these organizations starting in 2026 and increases minimum civil penalties for violations.
Key points
No Upfront Fees: Credit repair organizations cannot charge you until 6 months after service, and only if they prove your credit history improved.
Increased Transparency: Companies must provide you with copies of all communications sent on your behalf and any recordings of phone calls.
Mandatory State Licensing: Starting in 2026, all credit repair organizations must be licensed by a State.
Stricter Dispute Rules: Companies are restricted from submitting repetitive, unsubstantiated disputes ('jamming') to reporting agencies.
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Additional Information
Print number: 118_HR_9991
Sponsor: Rep. Nickel, Wiley [D-NC-13]
Process start date: 2024-10-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

ESCRA Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9991.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-10-15.

What are the main provisions?

Key points include:

  • No Upfront Fees: Credit repair organizations cannot charge you until 6 months after service, and only if they prove your credit history improved.
  • Increased Transparency: Companies must provide you with copies of all communications sent on your behalf and any recordings of phone calls.
  • Mandatory State Licensing: Starting in 2026, all credit repair organizations must be licensed by a State.
  • Stricter Dispute Rules: Companies are restricted from submitting repetitive, unsubstantiated disputes ('jamming') to reporting agencies.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Nickel, Wiley [D-NC-13].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

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