The Consumer Financial Protection Bureau (CFPB) is proposing a rule that would prevent consumer reporting agencies (CRAs) from including negative information resulting from abuse suffered by survivors of human trafficking.
“As survivors of human trafficking go through the recovery process, they shouldn’t be penalized for abuse they have endured,” CFPB Director Rohit Chopra said. “The CFPB’s proposal will help ensure that survivors can work to rebuild their lives, including accessing credit, opening a bank account, and finding a job.”
The rule is required by the Debt Bondage Repair Act, which was signed into law in December by President Joe Biden. Similarly, the Debt Bondage Repair Act prohibits CRAs from providing consumer reports that contain any negative item of information about a survivor of trafficking.
Human trafficking affects hundreds of thousands of victims and families. Victims of trafficking are forced to engage in commercial sex work or to work in other legal and illicit sectors, including hospitality, agriculture, janitorial services, construction, landscaping, restaurants, factories, adult dependent and childcare, salon and massage services, retail services, fairs and carnivals, peddling and begging, drug smuggling and distribution, and domestic work.
Many victims of trafficking suffer from financial abuse, which is a common tactic used by traffickers to further exploit victims and control them. After destroying their victims’ credit history and racking up charges in their names, traffickers know their victims will be unable to rent an apartment, purchase a car to go to work, or even find a job with a living wage.
The CFPBʻs proposed rule would help survivors know how to report their status as having experienced a form of trafficking. It would also require CRAs to block adverse information in consumer reports. All CRAs, regardless of reach or scope, will be covered, including nationwide CRAs, such as Equifax, Experian, and TransUnion, and specialty CRAs focused on areas like employment screening, tenant screening, check and bank screening, personal property insurance, medical, low-income and subprime, supplementary reports, utilities, retail, and gaming.
The public comment period will be open until May 9.