Joint Trades Letter to HFSC: Modernizing the Credit Repair Organizations Act
Dear Chairman McHenry and Ranking Member Waters:
The undersigned trade associations write regarding the increasing threat credit repair scams pose to consumers and the credit markets. 1 Credit repair organizations exploit the most vulnerable Americans and inundate creditors and credit bureaus with meritless and duplicative claims that information in a credit report is inaccurate. These activities jam the credit reporting system with illegitimate claims that divert resources from authentic consumer disputes and cost Americans exorbitant amounts of money for no actual value.
As part of the committee’s work in the 118th Congress, we encourage you to introduce bipartisan legislation to modernize the Credit Repair Organizations Act (CROA), which was passed in 1996. Amending the CROA would help to prevent credit repair firms from inducing consumers to pay for services that are not provided and from clogging dispute systems with false claims.
