US HB306

Amends the Credit Repair Organizations Act to prohibit credit repair organizations from collecting payment until they provide documentation showing promised credit improvements have been achieved, with proof required at least 6 months after service

Bans "jamming" practices where credit repair organizations submit multiple disputes of the same information without waiting for investigation results or providing new material information

Requires state licensing for all credit repair organizations starting January 1, 2026, and mandates that disputes sent to furnishers include the organization's name, state license number, and a disclosure identifying them as a credit repair organization

Extends record retention requirements from 2 years to 5 years for consumer statements and telephone recordings, and requires organizations to provide consumers copies of all communications sent on their behalf

Establishes $500 per violation in civil damages and expands prohibited practices to include knowingly making false statements to the CFPB, FTC, or law enforcement agencies