Rep. Sarah McBride introduces bipartisan bill to curb credit‑repair scams, require escrow for upfront fees

Representative Sarah McBride told the House Financial Services Committee that she is sponsoring bipartisan legislation, the Ending Scam Credit Repair Act (ESCROW), to strengthen consumer protections against abusive credit repair organizations.

McBride said CROs—credit repair organizations—use persuasive advertisements and digital communications to promise large credit‑score improvements while charging high upfront fees or exploiting loopholes in existing law. “Shiny promises and toll free numbers offering miraculous credit score boosts,” she said, “But what we don't see behind these advertisements is the deception, the abuse, and the heartbreak.”

What the bill would do: McBride said ESCROW would bar CROs from charging upfront fees until at least six months after a consumer is shown proof of real credit‑score improvement, close a telemarketing‑era loophole that CROs exploit online, prohibit duplicative or “jamming” requests that overwhelm financial institutions, strengthen state oversight, and increase penalties for bad actors.

McBride told the committee the existing federal prohibition on upfront fees was written for an era of telemarketing and has been evaded by new digital communications. “The protections, while well intended, are obviously hollow in those communication methods,” she said. She cited bipartisan support and said both consumer advocates and parts of the financial industry back the measure.

The committee’s discussion included member questions about whether the problem has grown with technology; McBride replied that enforcement actions and large settlements have occurred but that the loophole persists. No committee vote or formal action took place during the member‑day hearing.