Bipartisan Bill Targets Credit Repair Scams Nationwide

A bipartisan effort to crack down on credit repair scams is gaining momentum in Washington. Delaware Rep. Sarah McBride joined California Republican Young Kim to introduce the Ending Scam Credit Repair Act—now advancing in the Senate through Delaware Senator Chris Coons and Alaska Senator Lisa Murkowski. The bill would block credit repair companies from charging upfront fees until they prove results and would increase penalties for deceptive practices. Lawmakers say the move comes as the FTC sends out more than $10 million in refunds to scam victims—highlighting the need for stronger consumer protections.

Additional Information from the Office of Rep. Sarah McBride:

The Ending Scam Credit Repair Act would prohibit Credit Repair Organizations (CRO) from charging consumers until six months after they’ve provided proof that their credit score has improved while also increasing civil penalties for violations. The bill prohibits CROs from “jamming” financial institutions with duplicative requests, which has prevented consumer reporting agencies and data furnishers from addressing legitimate credit report issues. The legislation has earned broad support from consumer advocates, industry leaders, and elected officials in Delaware and across the country.

ESCRA was the first piece of legislation introduced by Rep. McBride in 2025 — and the first bill introduced by any freshman House Democrat in the 119th Congress. Last July, Rep. McBride testified before the Committee on Financial Services in support of ESCRA. 

Full text of the House bill can be found here.

Full text of the Senate bill can be found here.