A Democratic bill with 1 Republican cosponsor · See all 2 cosponsors
Last activity — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The "Ending Scam Credit Repair Act" or "ESCRA Act" aims to amend the Credit Repair Organizations Act to provide more protections against harmful practices in the industry. It updates the definition of a credit repair organization and adds new prohibited practices. The bill implements new rules regarding payment timing, dispute submissions, and required disclosures. It also establishes new requirements for how these organizations communicate with those who provide consumer information. Additionally, the act mandates state licensing for these entities and updates consumer rights regarding contracts and communications.
Yes· 3 of 6
- Scored +7
Does this give people more protection from unfair business practices?
The bill strengthens consumer protections by prohibiting advance payments, requiring state licensing, and establishing statutory damages for violations.
- Scored +5
Would households on low incomes be better off under this?
The bill protects low-income consumers from potential scams by requiring proof of results before payment is due.
- Scored +3
Would middle-income households be better off under this?
The bill provides better consumer protections for those utilizing credit repair services.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Payment Protections: A credit repair organization cannot request or receive payment for improving a consumer's credit history until they provide documentation from a consumer reporting agency showing the service was achieved (Section 3(b)(2)).
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Truthful Statements: The bill adds a requirement that entities must "knowingly" make statements, providing a finding that it is unlawful to make false or fraudulent statements to the Bureau of Consumer Financial Protection (Section 3(a)(1)).
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Transparency in Disclosures: Organizations must now disclose in writing that "Credit repair organizations do not provide any services that you cannot do yourself for free" (Section 4(1)(A)).
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Enhanced Record Keeping: Consumers are entitled to receive copies of all communications sent on their behalf at the time the communication is sent (Section 5).
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Consumer Protection via Licensing: To ensure legitimacy, the act mandates that no person may act as a credit repair organization without a State license starting January 1, 2026 (Section 6).
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Clearer Dispute Processes: The bill prevents "jamming" by requiring that a reasonable investigation period has passed and that new disputes include a specific description of what information is inaccurate (Section 3(b)(3)).
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Accountability through Damages: The bill adds a provision allowing for damages of $500 for each violation of the title (Section 8).
Potential Negative Impacts for People
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Increased Requirements for Disputes: Disputes sent by mail must now include specific identifying information such as the organization's name and State license number on the envelope (Section 7(a)(1)).
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Mandatory Disclosures on Letters: When sending a dispute, organizations are required to include a specific disclosure statement identifying themselves as a credit repair organization (Section 7(a)(7)).
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Strict Rules for Multiple Disputes: Organizations are prohibited from submitting multiple disputes regarding the same information unless specific conditions regarding investigation results and material changes are met (Section 3(b)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill protects low-income consumers from potential scams by requiring proof of results before payment is due. Would middle-income households be better off under this? — The bill provides better consumer protections for those utilizing credit repair services. Would people in cities be better off under this? — Enhanced consumer protections against predatory financial services may benefit urban populations more heavily targeted by such services.
- Economy And Finance
- Does this give people more protection from unfair business practices? — The bill strengthens consumer protections by prohibiting advance payments, requiring state licensing, and establishing statutory damages for violations.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill mandates greater transparency in communications between credit repair organizations and consumers.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — By regulating predatory credit repair practices, the bill helps protect the financial stability of low-income individuals.
- 7/16/2026
- 1 Cosponsor added.
- 3/19/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 1 Cosponsor added.
- Introduced in Senate
Catherine Cortez MastoDemocrat · Nevada
Lisa MurkowskiRepublican · Alaska