South OC Times

U.S. Representatives Young Kim and Sarah McBride have introduced a new bill aimed at addressing fraudulent practices within the credit repair industry. The legislation, known as the Ending Scam Credit Repair Act (ESCRA), seeks to protect consumers from credit repair organizations (CROs) that charge high fees without fulfilling promises to improve credit scores.

The proposed bill intends to regulate CROs by ensuring they only receive payment after demonstrating documented improvements in credit reports. It also plans to increase civil penalties for any violations of these regulations.

"Fraudulent credit repair organizations, or CROs, should not get away with scamming hardworking Americans seeking to improve their scores and unlock their American dream," stated Congresswoman Young Kim. "The Ending Scam Credit Repair Act helps consumers and hikes penalties for scammers. I’m thrilled to introduce the bipartisan Ending Scam Credit Repair Act and will continue to work on commonsense policies that empower Americans of all backgrounds to grow their wealth and achieve their dream."

Congresswoman Sarah McBride added her perspective on the issue: "For too long the credit repair industry has been scamming Delawareans with low credit scores by promising easy credit fixes. These CROs exploit legal loopholes to target cash-strapped Delawareans by charging large upfront fees based on false hopes of debt reduction. Our bipartisan bill eliminates those loopholes that have allowed predatory practices to flourish by banning upfront fees, improving transparency, and enhancing consumer protections. Delawareans deserve real results, not empty and costly promises. I am grateful to Congresswoman Kim for working across the aisle with me on common sense solutions to deliver for our constituents."