Rep. Sarah McBride of Delaware recently addressed the House Financial Services Committee, advocating for the Ending Scam Credit Repair Act (ESCRA). This bipartisan initiative, co-sponsored by McBride and Rep. Young Kim from California, aims to curb deceptive practices by credit repair organizations that mislead consumers with upfront fees and unfulfilled promises of credit score enhancements.
During her testimony, Representative McBride highlighted a significant aspect of the bill: “ESCRA also prohibits CROs from jamming financial institutions with duplicative requests, which have prevented those institutions from addressing legitimate credit report issues.”
The bill marks a milestone for Representative McBride as she becomes the first Democrat to introduce legislation in the 119th Congress. ESCRA has garnered widespread support from various organizations including the National Consumer Law Center, AARP, Consumer Action, American Bankers Association, National Association of Consumer Bankruptcy Attorneys, Consumer Bankers Association, National Association of Consumer Advocates, and American Fintech Council.
Additionally, AFSA is actively collaborating with congressional members to propel ESCRA through legislative proceedings.