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Ending Credit Repair Scams: New Rules and Consumer Protection

This act introduces new rules for credit repair organizations to protect consumers from fraudulent practices. These companies will no longer be able to charge upfront fees before proving an improvement in your credit history. The act aims to increase transparency and accountability in this industry, giving you more control over your finances and protecting you from unfair practices.
Key points
No upfront payments: Companies cannot charge money until they prove they have improved your credit history.
Increased transparency: Companies must disclose that you can perform their services yourself for free and provide contact details for regulatory bodies.
Limitation on multiple disputes: Companies cannot submit multiple disputes for the same information unless specific conditions are met.
State license requirement: From 2026, companies must have a state license to operate in this industry.
Higher damages: In case of violations, you can receive $500 in damages for each violation.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_306
Sponsor: Rep. McBride, Sarah [D-DE-At Large]
Process start date: 2025-01-09
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Summarized by: gemini-2.5-flash-preview-05-20
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 119_HR_306.

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 2025-01-09.

What are the main provisions?

Key points include:

  • No upfront payments: Companies cannot charge money until they prove they have improved your credit history.
  • Increased transparency: Companies must disclose that you can perform their services yourself for free and provide contact details for regulatory bodies.
  • Limitation on multiple disputes: Companies cannot submit multiple disputes for the same information unless specific conditions are met.
  • State license requirement: From 2026, companies must have a state license to operate in this industry.
  • Higher damages: In case of violations, you can receive $500 in damages for each violation.
What is the specific legal status?

The current status is Introduced.

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. McBride, Sarah [D-DE-At Large].

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 2025-12-22.

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