Rep. Sarah McBride, D-Del., made history by becoming the first freshman Democrat in the 119th Congress to introduce a bill, partnering with Rep. Young Kim, R-Calif., on the bipartisan Ending Scam Credit Repair Act.
The bill aims to amend the Credit Repair Organizations Act, offering greater consumer protections against predatory practices in the credit repair industry.
The legislation seeks to end harmful practices such as charging high upfront fees based on false promises of debt reduction and improving transparency in the industry.
It would also impose stronger penalties for violations and prevent credit repair organizations from submitting duplicate requests to financial institutions, which can interfere with legitimate credit report claims.
This bill comes on the heels of a December 2024 announcement that the Consumer Financial Protection Bureau secured $2.7 billion to be distributed to over 4 million consumers in response to fraudulent practices by credit repair organizations.
Delaware will receive more than $8.6 million of the settlement funds, significantly more than similarly populated states.
Delaware Attorney General Kathy Jennings commended McBride for addressing the growing threat posed by these scams and protecting vulnerable consumers.
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