ESCRA Act
Sponsored By: Senator Christopher Coons
Introduced
Summary
Stronger rules and state licensing for credit repair companies. This bill would expand the Credit Repair Organizations Act to add tougher consumer protections, require state licensing, and restrict deceptive and repeat dispute tactics.
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- Consumers would get clearer paperwork and real-time copies. Companies would have to give a signed contract and any documents or communications when signed or sent, and they could not charge until the consumer has documentation from a consumer reporting agency showing the promised fix, generally presumed not earlier than 180 days after service.
- Credit repair firms and lawyers would face new accountability and licensing. Operators would need a state license to run after Jan 1, 2026, firms would remain liable even when attorneys provide services, and violations could carry $500 in damages each.
- Disputes and furnishers would face stricter rules. Disputes must follow labeled first-class mail or specific recordkeeping for online forms, include the CRO name and license, allow 15 business days for clarifications, and the bill would bar "jamming" repeated disputes unless narrow conditions are met.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Clearer credit-repair disclosures and limits
If enacted, the bill would make credit repair companies give you clearer written disclosures and faster copies of their work. It would require the disclosure to say that you can do the same things for free, add CFPB contact details, and include telephone recordings when relevant. It would also require CROs to send you copies of contracts and every communication they send on your behalf. The bill would limit repeat disputes and make it unlawful to knowingly give false statements to the CFPB, FTC, or law enforcement, including reports made through official online portals.
No advance payment without proof
If enacted, the bill would bar credit repair organizations from asking for or taking payment until they give you a consumer report showing the promised fix. That consumer report would have to be from a consumer reporting agency and dated not earlier than 180 days after the service date. The bill says this rule does not change allowed uses of consumer reports under the Fair Credit Reporting Act.
State license required for credit repair
If enacted, the bill would bar anyone from acting as a credit repair organization on or after January 1, 2026 unless a State issues a license. States would set and enforce the licensing rules. This could reduce sketchy companies and improve oversight but might raise costs or reduce the number of providers available to consumers.
$500 penalty per CRO violation
If enacted, the bill would let a consumer recover $500 for each violation of the credit repair law. The civil remedies section would be changed so courts can award $500 per separate violation instead of relying only on actual damages.
How attorneys count as CROs
If enacted, the bill would change who counts as a credit repair organization when attorneys are involved. It would say fees received for representing a consumer in preparation for or during litigation are not part of the CRO payment rule. It would also add language that some attorneys in the same law firm working on bankruptcy or consumer-credit cases may be treated differently, while keeping CRO rules for organizations that employ attorneys except for the specific attorney described.
Sponsors & CoSponsors
Sponsor
Christopher Coons
DE • D
Cosponsors
Lisa Murkowski
AK • R
Sponsored 3/19/2026
Roll Call Votes
No roll call votes available for this bill.
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