Debt Bondage Repair Act Legislation

In December 2021, the Debt Bondage Repair Act was signed, which prohibits credit reporting companies from providing credit reports that contain any negative item of information about a survivor of trafficking (as a result of their trafficking situation) on their credit report. On July 25th, 2022 the CFPB updated the Fair Credit Reporting Act to ensures survivors are able to reclaim control of their financial lives. The new regulation contains the following: - Provides guidance to survivors on the trafficking documentation they need to provide to credit reporting agencies. - Provides guidance to survivors on reporting status of having experienced a form of trafficking. - Requires credit reporting companies to block adverse information in credit reports. - Applies to all credit reporting companies and includes employment screening, tenant screening, check and bank screening, personal property insurance, medical, low-income and subprime, utilities, retail and gaming. If a member, family member, prospective member or employee prospect indicates they have negative information on their credit report due to Human trafficking, have them reach out to the three main credit bureaus. The three main bureaus have resources on their websites to help guide victims through the process. Credit Report Request | Human Trafficking | Equifax Human Trafficking Survivor Resources | TransUnion Assistance for survivors of human trafficking - Experian

H. R. 2332

IN THE SENATE OF THE UNITED STATES

June 16, 2021

AN ACT

To prohibit consumer reporting agencies from furnishing a consumer report containing any adverse item of information about a consumer if such consumer is a victim of trafficking, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Debt Bondage Repair Act”.

SEC. 2. ADVERSE INFORMATION IN CASES OF TRAFFICKING.

(a) In General.—The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by inserting after section 605B the following:

“§ 605C Adverse information in cases of trafficking

“(a) In General.—A consumer reporting agency may not furnish a consumer report containing any adverse item of information about a consumer that resulted from a severe form of trafficking in persons or sex trafficking if the consumer has provided trafficking documentation to the consumer reporting agency.

“(b) Rulemaking.—

“(1) IN GENERAL.—The Director shall, not later than 180 days after the date of the enactment of this section, issue a rule to implement subsection (a).

“(2) CONTENTS.—The rule issued pursuant to paragraph (1) shall establish a method by which consumers shall submit trafficking documentation to consumer reporting agencies.

“(c) Definitions.—

“(1) TRAFFICKING DOCUMENTATION.—The term trafficking documentation means—

“(A) documentation of either—

“(i) a determination by a Federal or State government entity that a consumer is a victim of trafficking; or

“(ii) a determination by a court of competent jurisdiction that a consumer is a victim of trafficking; and

“(B) documentation that identifies items of adverse information that should not be furnished by a consumer reporting agency because the items resulted from the severe form of trafficking in persons or sex trafficking of which such consumer is a victim.

“(2) VICTIM OF TRAFFICKING.—For the purposes of this section, the term “victim of trafficking” means a person who is a victim of a severe form of trafficking in persons or sex trafficking, as such terms are defined in section 103 of the Trafficking Victims Protection Act of 2000.”.

(b) Table Of Contents Amendment.—The table of contents of the Fair Credit Reporting Act is amended by inserting after the item relating to section 605B the following new item:

“605C. Adverse information in cases of trafficking.”.

(c) Effective Date.—The amendments made by this section shall apply on the date that is 30 days after the date on which the Director of the Bureau of Consumer Financial Protection issues a rule pursuant to section 605C(b) of the Fair Credit Reporting Act.

(d) Determination Of Budgetary Effects.—The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled “Budgetary Effects of PAYGO Legislation” for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Passed the House of Representatives June 15, 2021.

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Debt Bondage Repair Act Legislation

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