The House Financial Services Committee convened this week to examine a range of financial frauds and scams impacting consumers in the United States. Ahead of the hearing, the American Financial Services Association (AFSA) submitted a letter to the committee drawing attention to issues such as credit repair scams, for-profit debt settlement schemes, and auto loan fraud.
In its letter, AFSA called on lawmakers to support the bipartisan Ending Scam Credit Repair Act (ESCRA). The association stated that this legislation would help prevent lenders from being overwhelmed by repetitive and unfounded credit disputes initiated by credit repair organizations.
During the hearing, Representative Nikema Williams (D-GA) discussed the harm caused by credit repair scams and their effect on the consumer financial marketplace. Representative Dan Meuser (R-PA) noted that addressing financial fraud is an ongoing effort for the committee. He also referenced a letter he sent with Representative Andy Barr (R-KY) to the Federal Reserve seeking information about measures being taken to address rising financial fraud.
AFSA affirmed its commitment to continue advocating in Congress regarding how financial scams negatively impact its members and their customers.