ESCRA Act

House Bill

H.R. 306

119th Congress

ESCRA Act

In Committee

Introduced:Jan 9, 2025

Primary Sponsor

Sarah McBride

Representative

Democratic

DE

Cosponsors

1

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This bill strengthens rules for credit repair organizations to prevent scams. Companies cannot charge until proving success at least six months later. It requires state licensing, five-year record retention, copies of all communications to consumers, and increases minimum damages to 500 dollars per violation.

Latest Action

Referred to the House Committee on Financial Services.

SponsorSarah McBride (D-DE)

Introduced1/9/2025

StatusReferred to the House Committee on Financial Services.

ChamberHouse

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Vote Prediction

ESCRA Act

This bill strengthens rules for credit repair organizations to prevent scams. Companies cannot charge until proving success at least six months later. It requires state licensing, five-year record retention, copies of all communications to consumers, and incre

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This bill strengthens rules for credit repair organizations to prevent scams. Companies cannot charge until proving success at least six months later. It requires state licensing, five-year record retention, copies of all communications to consumers, and increases minimum damages to 500 dollars per violation.

Bill Number: 306
Sponsor: Sarah McBride (D-DE)
Introduced: 1/9/2025
Status: Referred to the House Committee on Financial Services.
Policy Area: Finance and Financial Sector

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: ESCRA Act
Bill Number: 306
Sponsor: Sarah McBride (D-DE)
Status: Referred to the House Committee on Financial Services.
Introduced: 1/9/2025
Summary: This bill strengthens rules for credit repair organizations to prevent scams. Companies cannot charge until proving success at least six months later. It requires state licensing, five-year record retention, copies of all communications to consumers, and increases minimum damages to 500 dollars per

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill strengthens rules for credit repair organizations to prevent scams. Companies cannot charge until proving success at least six months later. It requires state licensing, five-year record retention, copies of all communications to consumers, and increases minimum damages to 500 dollars per violation.

Last updated: 1/6/2026

Official Summary

Congressional Research Service summary

Ending Scam Credit Repair Act or the ESCRA ActThis bill revises the Credit Repair Organizations Act and creates additional requirements for credit repair organizations (CROs).Under current law, it is illegal for a person (including a CRO) to make false or misleading statements regarding a consumer’s creditworthiness or standing to a consumer reporting agency or to a consumer credit provider. The bill additionally prohibits making such statements to the Consumer Financial Protection Bureau, the Federal Trade Commission, or law enforcement. To be subject to this prohibition, the bill also requires such statements to be made knowingly.The bill also revises CRO obligations to consumers. A CRO is prohibited from charging a consumer for a service (e.g., getting inaccurate information removed from a credit report) until the CRO provides proof of success not less than six months after providing the service. The bill also requires additional disclosures to consumers, requires the retention of any recorded telephone calls, and increases the time records must be retained from two to five years. In addition, consumers must be given copies of all communications sent on their behalf.Under the bill, all persons must be licensed by a state to act as a CRO. The bill also restricts a CRO’s ability to submit multiple credit disputes regarding the same information.The bill also sets a minimum liability amount for damages of $500 for each violation of the Credit Repair Organizations Act.

Key Points

Main provisions of the bill

Prohibits charging until proving success after six months
Requires state licensing for all credit repair organizations
Increases record retention from two to five years
Sets minimum damages at 500 dollars per violation
Limits multiple disputes about the same credit information

How This Impacts Americans

Potential effects on citizens and communities

Consumers would have stronger protections against fraudulent credit repair companies. Legitimate credit repair services would face stricter oversight. Scam operators would find it harder to charge upfront fees without delivering results.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

306, 119th Congress (2025). "ESCRA Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-306

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