Bills · HR 306
IN COMMITTEE· 119TH CONGRESS
House BillHR 306Finance and Financial Sector
ESCRA Act
INTRO JAN 9· LAST ACTION JAN 9
READING
8MIN
COSPONSORS
7BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenMany Americans struggle with their credit scores and often turn to credit repair services, some of which may be ineffective or even fraudulent. This bill matters because it aims to protect vulnerable consumers from being exploited by requiring companies to prove they've delivered results before getting paid. This could save individuals from losing money on services that don't help them.
If this bill becomes law, the credit repair industry would become more regulated and trustworthy, reducing the prevalence of scams and misleading practices. If it doesn't pass, consumers will continue to face the risk of paying upfront for services that might not improve their credit and dealing with companies that are not held to a consistent standard of accountability or state licensing requirements.
KEY PROVISIONS
5AI-extractedPROVISION 01
Credit repair organizations cannot request or receive payment from a consumer until 6 months after services are provided, and only if a consumer report demonstrates the promised credit improvement.
This provision protects consumers from paying for ineffective services by linking payment to proven results.
PROVISION 02
Starting January 1, 2026, all credit repair organizations must be licensed by a state to operate.
This creates a mandatory regulatory framework to ensure legitimacy and oversight within the credit repair industry.
PROVISION 03
Credit repair organizations are prohibited from submitting multiple disputes of the same information ('jamming') unless specific conditions are met, such as waiting for prior investigation results or providing new, specific information.
This aims to prevent abusive dispute practices that can overwhelm credit reporting agencies and may not genuinely help consumers.
PROVISION 04
Credit repair organizations must include specific disclosures to consumers, including stating that consumers can do credit repair themselves for free, and must keep comprehensive records, including telephone recordings, for 5 years.
These changes increase transparency for consumers and enhance accountability for credit repair organizations.
PROVISION 05
The bill clarifies that attorneys providing legal services for bankruptcy or certain federal court cases are not considered credit repair organizations under specific conditions.
This provision helps to define the scope of the Credit Repair Organizations Act, distinguishing legal professionals from credit repair companies.
SPONSORSHIP
1 + 7
D· Delaware
YRS IN OFFICE
1
BILLS LED
10
COSPONSOR BREAKDOWNBIPARTISAN · 85%
DEM 3 REP 4 IND 0
ACTION TIMELINE
2 EVENTSJAN 9
Introduced in House
JAN 9
Referred to the House Committee on Financial Services.
BILL INFO
TypeHouse Bill
NumberHR 306
Congress119th
StatusIn Committee
IntroducedJan 9, 2025
Last actionJan 9, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCIAL SERVICES COMMITTEE · INTRODUCED JAN 9, 2025
House BillHR 306Finance and Financial Sector
ESCRA Act
INTRODUCED JAN 9, 2025· LAST ACTION JAN 9, 2025
PASSAGE CHANCES
—%
READING
8 min
COSPONSORS
7
COMPLEXITY
Moderate
