AFSA Supports Bipartisan Credit Repair Scam Legislation

AFSA Supports Bipartisan Credit Repair Scam Legislation

Reps. Sarah McBride (D-DE) and Young Kim (R-CA) reintroduced the bipartisan "Ending Credit Repair Scams Act" (HR 306) last week. This bipartisan legislation would protect financially distressed consumers from shady credit repair organizations (CROs) that falsely promise to rebuild their credit history while charging expensive up-front and monthly fees.

Representative McBride recognized AFSA's support in a press statement:
Financial-services companies and consumer advocacy groups are grateful for congressional action on behalf of consumers, having seen first-hand the real harm credit repair organizations cause consumers, often charging hundreds of dollars a month, but yielding few if any positive results," said American Financial Services Association (AFSA) President and CEO Bill Himpler.

Several news organizations highlighted ESCRA's bipartisan introduction, including Politico, the Washington Post, and NOTUS.

AFSA and other consumer-focused financial services advocacy organizations support this bipartisan legislation, which is similar to a bill introduced last Congress. The bill would combat fraudulent practices in the credit repair industry, targeting CROs that exploit consumers by charging high fees without delivering on promises to improve credit scores and strengthen regulations to ensure transparency and accountability in the industry.

AFSA looks forward to working with Representatives McBride and Kim to advance this important legislation later this year.

January 15th, 2025