ESCRA Act
Sponsored By: Senator Coons, Christopher A. [D-DE]
Introduced
Summary
Tighten rules on credit repair companies by expanding who counts as a credit repair organization and adding stronger consumer protections, clearer disclosures, state licensing, and bigger penalties. This bill would broaden the law's definitions, curb deceptive practices, and boost enforcement tools.
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- Consumers would get stricter safeguards: they must receive a copy of the signed contract and all communications, advance fees would be banned until a consumer report (no earlier than 180 days) shows results, and repeated dispute "jamming" would be limited.
- Credit repair organizations and some law-firm affiliates would face new requirements: a state licensing mandate takes effect on January 1, 2026, the CROA definition would expand to cover more actors, and the law would add a $500 damages remedy for each violation.
- Regulators and information providers would face tighter rules: the Bureau of Consumer Financial Protection and the Federal Trade Commission would gain clearer enforcement channels and online complaint access, furnishers would face specific content and timing rules for dispute communications, and responses to requests for clarifying information must be written within 15 business days.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
No upfront fees without proof
This bill would stop credit repair companies from asking you to pay until they show a consumer report proving the promised result. The report must be from a consumer reporting agency and must be issued not earlier than 180 days after the service date. This rule would take effect upon enactment.
Stronger enforcement and damages
If enacted, consumers would get stronger enforcement tools and a new damages remedy. The bill would add $500 in damages for each violation of the credit repair title in private lawsuits. It would also make it unlawful to knowingly make material false statements about credit repair services and let people submit complaints to the Bureau of Consumer Financial Protection, the Federal Trade Commission, or law enforcement, including through online portals. These changes would take effect upon enactment.
New state license and definition
This bill would change who counts as a credit repair organization and require state licensing. Payments for representing a consumer in litigation would not count as credit repair fees in some cases. A limited attorney exception would apply for legal work tied to bankruptcy or certain consumer credit cases within the same law firm. Beginning January 1, 2026, a person could not act as a credit repair organization unless licensed by a State.
Tighter dispute rules and disclosures
If enacted, credit repair firms would have new rules for disputes, notices, and disclosures. They could not send repeat disputes about the same item unless the FCRA investigation time passed, you got the investigation results, or the resubmission showed material changes. Firms would have to put their name, State license number (if any), and your name on dispute letters and envelopes, and must answer a furnisher in writing within 15 business days if clarifying information is requested. You would also get a copy of the signed contract and the required disclosure when you sign, and firms must give you copies of any communications they send for you at the time they send them. The disclosure must say: "Credit repair organizations do not provide any services that you cannot do yourself for free." Telephone recordings must be kept and can satisfy timing requirements.
Sponsors & CoSponsors
Sponsor
Coons, Christopher A. [D-DE]
DE • D
Cosponsors
Sen. Murkowski, Lisa [R-AK]
AK • R
Sponsored 3/19/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov