The Consumer Financial Protection Bureau (CFPB) issued a final rule to financially help survivors of human trafficking.
Survivors often find that their credit reports reflect financial obligations and negative information resulting from the financial abuse they endured while being trafficked. Traffickers employ financial abuse as both a source of income and a method of control. After destroying their victims’ credit history and racking up charges in their names, traffickers know their victims wonʻt be able to find affordable housing, get a job, or access credit on fair terms.
The rule, called Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking, provides guidance to survivors on the “trafficking documentation” they need to provide to credit reporting companies. It also guides survivors on reporting status as having experienced a form of trafficking. Further, it requires all credit reporting companies to block adverse information in credit reports, among other measures. The final rule is effective July 25.
“Too many survivors of human trafficking find their financial lives in tatters with few places to turn to for help,” CFPB Director Rohit Chopra said. “The new rule will help clear credit reporting roadblocks that survivors face as they rebuild their lives.”
In addition, in December 2021, President Biden signed the National Defense Authorization Act into law, including the Debt Bondage Repair Act. This act prohibits credit reporting companies from providing credit reports that contain any negative item of information about a survivor of trafficking that resulted from the trafficking. This final rule updates the Fair Credit Reporting Act’s implementing regulation to ensure it meets the Debt Bondage Repair Act’s credit reporting requirements and that survivors’ credit information is reported fairly.