119th Congress (2025-2026)

S 4144

ESCRA Act

Introduced

Jurisdiction

US Congress

Session

119th Congress (2025-2026)

Official source

Chamber

Senate

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

Bill overview

The Ending Scam Credit Repair Act (EScra Act) amends the Credit Repair Organizations Act to strengthen consumer protections against deceptive practices in the credit repair industry. It clarifies definitions, prohibits misleading statements, restricts upfront payments, and requires detailed disclosures to consumers. The bill also addresses issues related to dispute submission and legal services provided by credit repair organizations.

Key provisions

Defines ‘credit repair organization’ more strictly, excluding attorneys providing legal services related to litigation.
Prohibits making false or misleading statements about credit repair services.
Restricts credit repair organizations from requesting or receiving payments in advance of services.
Requires credit repair organizations to provide consumers with documentation demonstrating the achievement of promised results.
Prohibits submitting multiple disputes for the same information unless specific conditions are met.
Mandates clear disclosures regarding the organization’s role and regulations.
Requires credit repair organizations to provide consumers with copies of all communications.
Establishes requirements for disputes submitted to furnishers of information, including identification of the credit repair organization and consumer.

Who is affected

Credit repair organizations
Consumers seeking credit repair services
Consumer reporting agencies

Positions across the country

No public positions recorded for this legislation.

Arguments in favor

Reasons to support this legislation.

No arguments in favor have been submitted.

Submit yours

Arguments opposed

Reasons to oppose this legislation.

No arguments opposed have been submitted.

Submit yours

Legislative history

2026-03-19Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

2026-03-19

Introduced in Senate

Read the latest version inline or switch to a previous version.

Mar 19, 2026XMLView source

119th CONGRESS — 2d Session

S. 4144

IN THE SENATE OF THE UNITED STATES

A BILL

To amend the Credit Repair Organizations Act to add additional protections against harmful practices within the credit repair organization industry, and for other purposes.

1.Short title

This Act may be cited as the

Ending Scam Credit Repair Act

or the

ESCRA Act

2.Credit Repair Organization definition

Section 403(3) of the Credit Repair Organizations Act (15 U.S.C. 1679a(3))—

(1)

in subparagraph (A), by inserting (not including anything received in return for representing a consumer in preparation for or during litigation) after consideration; and

(2)

in subparagraph (B)—

(A)

in the matter preceding clause (i), by inserting an entity or individual that is, in good faith and not for the purpose of evading this title after include;

(B)

in clause (ii), by striking or at the end;

(C)

in clause (iii), by striking the period and inserting ; or; and

(D)

by adding at the end the following:

(iv)any attorney that provides legal services rendered or to be rendered to a consumer in contemplation of or in connection with a case filed, or to be filed within 12 months, under title 11, United States Code, or the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.), by an attorney within the same law firm.

3.Prohibited practices

(a)Untrue or misleading statements

(1)In general

Section 404(a)(1) of the Credit Repair Organizations Act (15 U.S.C. 1679b(a)(1)) is amended—

(A)

in the matter preceding subparagraph (A), by inserting knowingly before make any statement, or;

(B)

in subparagraph (A), by striking or at the end; and

(C)

by adding at the end the following:

(C)the Bureau of Consumer Financial Protection directly or through an online portal established to receive complaints, disputes, or reports of fraud;

(D)the Federal Trade Commission directly or through an online portal established to receive complaints, disputes, or reports of fraud; or

(E)any Federal, State, local, or Tribal law enforcement agency directly or through an online portal established to receive complaints, disputes, or reports of fraud;

(2)Finding

The Congress finds that it is unlawful, as of the date of enactment of this Act, to make materially false, fictitious, or fraudulent statements or representations to the Bureau of Consumer Financial Protection.

(b)Additional prohibited practicesSection 404 of the Credit Repair Organizations Act (15 U.S.C. 1679b) is amended—

(1)

in subsection (a)(2)—

(A)in subparagraph (B)(ii), by striking the semicolon and inserting ; or; and

(B)

by adding at the end the following:

(C)the Bureau of Consumer Financial Protection or the Federal Trade Commission;

;

(2)

by amending subsection (b) to read as follows:

(b)Payment in Advance

(1)In generalNo credit repair organization may request or receive payment of any fee or consideration from a consumer for services represented to remove derogatory or inaccurate information from, or improve, the credit history of such consumer's credit history, credit record, or credit rating, or services related to such a representation, until the credit repair organization has provided such consumer with documentation in the form of a consumer report, issued not earlier than 180 days after the date on such service is rendered, from a consumer reporting agency that demonstrates that such representation has been achieved.

(2)Rule of constructionNothing in this subsection shall be construed to alter the permissible purposes of furnishing a consumer report described in section 604 of the Fair Credit Reporting Act.

; and

(3)

by adding at the end the following:

(c)JammingA credit repair organization may not submit multiple disputes described in section 611 of the Fair Credit Reporting Act of the same information unless all of the following are true:

(1)The consumer reporting agency or data furnisher has had the time permitted under the Fair Credit Reporting Act to conduct a reasonable investigation on the prior dispute.

(2)The consumer reporting agency or data furnisher has returned the results of its investigation to the consumer with respect to such dispute, unless there are material changes to the information submitted with the dispute.

(3)The credit repair organization includes with the resubmitted dispute a specific description of what information is inaccurate.

4.Disclosures

Section 405 of the Credit Repair Organizations Act (15 U.S.C. 1679c) is amended—

(1)

in the written statement in subsection (a)—

(A)

in the second undesignated paragraph, by inserting Credit repair organizations do not provide any services that you cannot do yourself for free. after the period at the end of the fourth sentence;

(B)

in the eighth undesignated paragraph, by striking regulates and inserting and the Bureau of Consumer Financial Protection regulate; and

(C)

by inserting The Bureau of Consumer Financial Protection 1700 G St. NW, Washington, DC 20552 Tel: 855–411–2372 TTY/TTD: 855–729–2372 after 20580; and

(2)

in subsection (c)—

(A)

in paragraph (1), by inserting and any recordings of telephone communications with the consumer before the period at the end; and

(B)

in paragraph (2)—

(i)

in the heading, by striking 2 and inserting 5;

(ii)

by inserting and any telephone recordings with the consumer after consumer’s statement;

(iii)

by striking 2 and inserting 5; and

(iv)

by striking statement is signed by the consumer and inserting statement or the telephone recordings are created.

5.Consumer contract required

Section 407 of the Credit Repair Organizations Act (15 U.S.C. 1679e) is amended by striking subsection (c) and inserting the following:

(c)Consumer copy of contract and communications required

(1)ContractAny consumer who enters into any contract with any credit repair organization shall be given, by the organization—

(A)

a copy of the completed contract and the disclosure statement required under section 405; and

(B)

a copy of any other document the credit repair organization requires the consumer to sign,

at the time the contract or the other document is signed.

(2)CommunicationsAny consumer described in paragraph (1) shall be given, by the organization copies of all communications sent on behalf of the consumer, at the time the communication is sent.

6.Noncompliance

Section 408 of the Credit Repair Organizations Act (15 U.S.C. 1679f) is amended by adding at the end following:

(d)Legal services within credit repair organizations

A credit repair organization shall be subject to this title regardless of whether the organization is, or employs, an attorney who also provides legal services to a consumer, except if such attorney is an attorney described in section 403(3)(B)(iv).

(e)Credit repair organizations without a State licenseOn or after January 1, 2026, no person may act as a credit repair organization unless such person is licensed by a State.

7.Credit repair organization communications with furnishers of information

(a)In generalThe Credit Repair Organizations Act (15 U.S.C. 1679 et seq.) is amended by inserting after section 408 the following:

408A.Credit repair organization communications with furnishers of information

Disputes submitted to a person who furnishes information to a consumer reporting agency by or on behalf of a credit repair organization shall meet the following requirements:

(1)If sent by mail, the dispute shall be transmitted by first class mail and list on the envelope the—

(A)

name of the credit repair organization; and

(B)

State license number of the credit repair organization, if applicable.

(2)The dispute shall list the—

(A)

name of the credit repair organization;

(B)

State license number of the credit repair organization, if applicable; and

(C)

name of the consumer on whose behalf the dispute is submitted.

(3)In the case of any additional communication after an initial dispute, the additional communication shall clearly and conspicuously identify any material changes to the information provided in the initial written dispute and include the information described in paragraphs (1) and (2).

(4)In the case where a credit repair organization sells or otherwise provides an online or paper blank dispute form to be completed and filed by the consumer, such form must contain the—

(A)

name and address of such credit repair organization; and

(B)

State license number of such credit repair organization, if applicable.

(5)In the case where the person responds to a dispute submitted by a credit repair organization seeking clarifying information, verifying if the customer has actually engaged with the credit repair organization, or denying the accuracy of the underlying claim, the credit repair organization shall respond in writing within 15 business days.

(6)In the case where the credit repair organization is an attorney, the attorney shall certify that any communication is consistent with any information or documentation provided by the consumer, confirmed based upon methods or means proven to be historically reliable and accurate.

(7)A credit repair organization, when sending a dispute, shall disclose the fact that it is a credit repair organization by placing the following disclosure on the dispute letter: This communication was submitted or prepared on behalf of the consumer by a credit repair organization, as defined in section 403 of the Credit Repair Organizations Act (15 U.S.C. 1679a).

(b)Clerical amendmentThe table of contents for the Credit Repair Organizations Act is amended by inserting after the item relating to section 408 the following:

408A. Credit repair organization communications with furnishers of information.

8.Civil liability

Section 409(a)(1) of the Credit Repair Organizations Act (15 U.S.C. 1679g(a)(1)) is amended—

(1)

in the heading, by striking Actual damages and inserting Damages;

(2)

in subparagraph (A), by striking or at the end;

(3)

in subparagraph (B), by striking the period at the end and inserting ; or; and

(4)

by adding at the end the following:

(C)damages of $500 for each violation of this title.

S 4144

Bill overview

Key provisions

Who is affected

Sponsors

Primary sponsor

Cosponsors

Positions across the country

Arguments in favor

Arguments opposed

Bill text

Notable changes

Fiscal impact

Positions across the country