ESCRA Act

This bill changes federal rules for credit repair companies, which charge consumers to try to improve their credit records. It would bar these companies from collecting fees until they show the consumer a credit report, issued at least 180 days after the service, showing the promised result. It would require credit repair companies to be licensed by a state, limit repeated disputes of the same credit information, and require dispute letters to identify the company and state that a credit repair organization prepared them. It would also add a disclosure that consumers can do these services themselves for free, require records and phone recordings to be kept for 5 years, and allow consumers to recover $500 for each violation. Certain attorneys handling bankruptcy or consumer credit cases would be excluded from the definition of a credit repair organization.

Full text and official record on Congress.gov

Sponsors

• Christopher A. Coons Democrat sponsor
• 2 cosponsors