What does Preamble of ESCRA Act do?

This bill aims to amend the Credit Repair Organizations Act The amendment adds protections against harmful practices in the credit repair industry

What does SHORT TITLE. of ESCRA Act do?

This bill is formally titled the Ending Scam Credit Repair Act.

What does CREDIT REPAIR ORGANIZATION DEFINITION. of ESCRA Act do?

This section amends the Credit Repair Organizations Act It modifies the definition of a credit repair organization The amendment excludes certain attorney services from the definition

What does PROHIBITED PRACTICES. of ESCRA Act do?

This section amends the Credit Repair Organizations Act (CROA) to clarify prohibited practices. It adds the Bureau of Consumer Financial Protection, the Federal Trade Commission, and law enforcement agencies as entities to which false statements are prohibited. The Act establishes that making materially false statements to the Bureau of Consumer Financial Protection is unlawful upon enactment. It modifies CROA section 404(a)(2) to include the Bureau of Consumer Financial Protection and the Federal Trade Commission. The Act prohibits credit repair organizations from requesting payment until they provide documentation, in the form of a consumer report issued 180 days after service, demonstrating the representation of improved credit history has been achieved. It prevents 'jamming' – submitting multiple disputes without proper investigation and response from agencies – unless specific conditions are met, including allowing time for investigation and providing a description of inaccurate information. The Act clarifies that the permissible purposes of furnishing a consumer report under the Fair Credit Reporting Act remain unchanged.

What does DISCLOSURES. of ESCRA Act do?

This section amends Section 405 of the Credit Repair Organizations Act The amendment includes disclosures about services credit repair organizations provide It updates the written statement to include information about the Bureau of Consumer Financial Protection

What does CONSUMER CONTRACT REQUIRED. of ESCRA Act do?

This section amends Section 407 of the Credit Repair Organizations Act. It requires credit repair organizations to provide consumers with a copy of the completed contract and disclosure statement at the time of signing. Credit repair organizations must also provide consumers with copies of any other documents they require the consumer to sign. The organization is required to provide consumers with copies of all communications sent on behalf of the consumer at the time the communication is sent.

What does NONCOMPLIANCE. of ESCRA Act do?

Section 408 of the Credit Repair Organizations Act (15 U.S.C. 1679f) is amended. The amendment adds a subsection (d) stating that credit repair organizations are subject to the title regardless of whether they employ an attorney providing legal services, except for attorneys described in section 403(3)(B)(iv). The amendment adds a subsection (e) stating that, on or after January 1, 2026, a person may not act as a credit repair organization unless they are licensed by a State.

What does CREDIT REPAIR ORGANIZATION COMMUNICATIONS WITH FURNISHERS OF of ESCRA Act do?

This section amends the Credit Repair Organizations Act to establish requirements for communications between credit repair organizations and furnishers of information. Disputes submitted by or on behalf of a credit repair organization must be sent by first-class mail, listing the organization's name and state license number (if applicable) on the envelope. The dispute itself must also list the credit repair organization's name, state license number (if applicable), and the consumer's name. Subsequent communications regarding a dispute must clearly identify any changes to the initial information and include the required organization and consumer details. Blank dispute forms provided by credit repair organizations must include the organization's name, address, and state license number (if applicable). Furnishers responding to disputes seeking clarification or denying accuracy must receive a written response from the credit repair organization within 15 business days. Attorneys acting as credit repair organizations must certify that communications are consistent with consumer-provided information and verified using reliable methods. Dispute letters must include a disclosure stating that the communication was submitted or prepared by a credit repair organization.

What does CIVIL LIABILITY. of ESCRA Act do?

This section amends Section 409(a)(1) of the Credit Repair Organizations Act. The heading of Section 409(a)(1) is changed from 'Actual damages' to 'Damages'. Subparagraph (A) of Section 409(a)(1) is modified by removing 'or' at the end. Subparagraph (B) of Section 409(a)(1) is modified by replacing the period at the end with '; or'. A new subparagraph (C) is added to Section 409(a)(1), establishing damages of $500 for each violation of the title.

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ESCRA Act

Last updated: 3/19/2026 · Introduced: 3/19/2026

Author: Christopher Coons (D-DE)

TL;DR (AI)

The Ending Scam Credit Repair Act amends the Credit Repair Organizations Act to exclude certain attorney services from the definition of a credit repair organization.
The bill prohibits credit repair organizations from requesting payment until they provide documentation demonstrating improved credit history and restricts practices like submitting multiple disputes without proper investigation.
Starting in 2026, credit repair organizations will be required to obtain a state license to operate, and the Act establishes new requirements for communications between these organizations and entities that furnish credit information.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 7 more.

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