Sarah McBride’s introduces her first bill in Congress, which targets predatory credit repair companies

Delaware U.S. Rep. Sarah McBride, the first out transgender person elected to the U.S. House of Representatives, is wasting no time making an impact. On Friday, she introduced her first piece of legislation, a bipartisan bill to crack down on credit repair scams that exploit vulnerable consumers. Co-sponsored with Republican U.S. Rep. Young Kim of California, the Ending Scam Credit Repair Act takes on an industry notorious for predatory practices.

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“For too long the credit repair industry has been scamming Delawareans with low credit scores by promising easy credit fixes,” McBride, a Democrat, said in a statement. “These CROs 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.”

Related: History-making Sarah McBride sworn in as first out transgender member of Congress

The legislation tackles fraudulent practices by banning upfront fees, requiring proof of credit improvement before payment, and increasing penalties for violations. It also addresses a tactic called “jamming,” where credit repair organizations overwhelm financial institutions with repetitive and often baseless dispute requests, which delay the resolution of legitimate credit issues.

Kim emphasized the importance of the bipartisan effort. “Fraudulent credit repair organizations, or CROs, should not get away with scamming hardworking Americans seeking to improve their scores and unlock their American dream,” she said. “The Ending Scam Credit Repair Act helps consumers and hikes penalties for scammers.”

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Delaware Attorney General Kathy Jennings, a Democrat, praised McBride’s quick action. “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,” Jennings said. “I applaud Congresswoman McBride for taking on critical consumer protection work in her first week in Congress.”