WAHSINGOTN D.C. - Rep. Sarah McBride (D-DE) and Rep. Young Kim (R-CA) have introduced a bipartisan bill aimed at protecting consumers from fraudulent credit repair organizations.
The Ending Scam Credit Repair Act would stop companies from charging high upfront fees and making false promises to improve credit scores. The bill requires credit repair organizations to prove they have improved a consumer’s credit before charging fees and increases penalties for violators.
McBride, the first freshman Democrat to introduce a bill in the 119th Congress, said the law would end deceptive practices harming Delawareans and others.
Advocates, including Delaware’s Attorney General Kathy Jennings, have praised the bill, calling it a crucial step to protect vulnerable consumers from financial exploitation.