Delaware's McBride introduces bill to protect against credit repair scams
Representative is first freshman Democrat to launch legislation this year
By WASHINGTON — Rep. Sarah McBride, D-Del., became the first freshman Democrat of the 119th Congress to introduce a bill Friday, unveiling the bipartisan Ending Scam Credit Repair Act.
The congresswoman partnered with Rep. Young Kim, R-Calif., to present the legislation, which amends the Credit Repair Organizations Act to add protections against harmful practices in the credit repair organization industry.
“For too long, the credit repair industry has been scamming Delawareans with low credit scores by promising easy credit fixes,” Rep. McBride said. “These credit repair organizations exploit legal loopholes to target cash-strapped Delawareans by charging large upfront fees based on false hopes of debt reduction.
“Our bipartisan bill eliminates those loopholes that have allowed predatory practices to flourish by banning upfront fees, improving transparency and enhancing consumer protections. Delawareans deserve real results, not empty and costly promises. I am grateful to Congresswoman Kim for working across the aisle with me on common sense solutions to deliver for our constituents.”
Such fraudulent practices include charging high fees without fulfilling agreements consumers agreed to on the condition of improving their credit score and charging illegal upfront fees.
The measure would increase civil penalties for such violations, with Reps. McBride and Kim noting in statements Friday that, by strengthening credit repair regulations, the proposal would bolster accountability and transparency in the industry.
The bill would also prohibit credit repair organizations from “jamming” financial institutions, which relates to submitting duplicate requests to prevent consumer reporting agencies from addressing legitimate credit report claims.
The introduction of this proposal follows the December 2024 announcement that the Consumer Financial Protection Bureau secured approximately $2.7 billion for distribution to over 4 million consumers following a lawsuit against credit repair organizations for fraudulent practices.
Of the monies being given to each state, Delaware is receiving over $8.6 million, significantly more than similarly populated states like Vermont ($1.8 million) and Rhode Island ($5.2 million).
Delaware Attorney General Kathy Jennings recognized in a statement that scams like these represent a growing threat to consumers in the First State and nationwide.
“Our office is Delaware’s principal consumer protection agency, and the deceptive practices of so-called ‘credit repair’ companies harm some of our most vulnerable neighbors,” she noted.
“Scammers like these are a growing threat to consumers all over the country, and I applaud Congresswoman McBride for taking on critical consumer protection work in her first week in Congress.”
