Sen. Coons and Sen. Murkowski Introduce the ESCRA Act to Crack Down on Credit Repair Scams
The ESCRA Act is currently in the early stages of the legislative process after being introduced in the Senate. It has been sent to the Committee on Banking, Housing, and Urban Affairs for review, where it is currently waiting for further action. There are no upcoming votes scheduled at this time.
Credit repair companies — many of which are small businesses — face major new compliance requirements including state licensing, a ban on upfront fees, 5-year record retention for phone calls, and anti-jamming rules. Legitimate operators may benefit from reduced competition from scam operations, but the new rules impose significant operational costs and the 180-day payment delay could create severe cash flow problems.
“No credit repair organization may request or receive payment of any fee or consideration from a consumer for services represented to remove derogatory or inaccurate information from, or improve, the credit history of such consumer's credit history, credit record, or credit rating”
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
A bipartisan group of lawmakers introduced the Ending Scam Credit Repair Act (ESCRA) to crack down on deceptive practices. The bill prohibits credit repair organizations from collecting payment until six months after providing proof of credit improvement and bans the practice of 'jamming.'
Senators Chris Coons and Lisa Murkowski introduced a bill to amend the Credit Repair Organizations Act. The legislation requires companies to provide documentation of success before charging fees and mandates disclosures that consumers can perform these services themselves for free.
U.S. Senators Lisa Murkowski and Chris Coons introduced the ESCRA Act to address fraudulent credit repair organizations. The bill targets 'jamming'—a tactic where firms flood financial institutions with duplicative disputes—and increases civil penalties for violations to $500.
Document Type
Congressional Bill
Official Title
ESCRA Act
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