CREDIT REPAIR FOR SURVIVORS OF HUMAN TRAFFICKING
The Consumer Financial Protection Bureau (CFPB), a U.S. government agency
responsible for overseeing financial products and services for consumers, has published
details of a new credit repair law and process for victims and survivors of trafficking to
block adverse information from their consumer and credit reports that resulted from
their trafficking experience.
This was created in response to efforts by survivors and other advocates to create and
design an accessible process. This will change the lives of many survivors by providing
a new pathway to financial freedom.
This process is new and will continue to evolve. There are some questions about the
process that have not been answered yet.
We will continue to provide updates as we
get more information.
Here is what we know so far.
CONTENTS
HUMAN TRAFFICKING CREDIT REPAIR OVERVIEW
What is the Debt Bondage Repair Act?
What is a consumer reporting agency and what is a credit report?
What does it mean to block information from a consumer report? How does
blocking information impact an individual’s credit score?
Blocking Info from a Credit Report vs. Debt Forgiveness
How long does information remain on a consumer report or credit report?
What information can survivors of trafficking block through the credit process
created by the Debt Bondage Repair Act?
INFORMATION REQUIREMENTS AND ELIGIBILITY
Who is eligible and what information is required?
What proof of identity are survivors required to submit?
What documentation of trafficking experience are survivors required to submit?
How do government agencies authorize non-governmental service providers to
attest to an individual’s victim status?
THE PROCESS
How do you submit a request to block adverse credit information through this
process?
How long does this process take?
How does a consumer reporting agency make a final determination about whether
to block the information?
Who should I contact if I have more questions about this process?
HUMAN TRAFFICKING CREDIT REPAIR OVERVIEW
What is the Debt Bondage Repair Act?
In December 2021, Congress passed the Debt Bondage Repair Act as part of a larger
package of legislation. This new law was drafted in response to survivors who shared
how their trafficking experiences negatively impacted their credit scores, such as
traffickers opening or controlling bank accounts or lines of credit in their name.
This new law required the Consumer Financial Protection Bureau (CFPB), a U.S.
government agency responsible for overseeing financial products and services for
consumers, to create a process through which survivors of human trafficking can apply
to have adverse credit information resulting from their trafficking experience removed
from their credit reports. In June, the CFPB published details of the new process
through which victims and survivors of human trafficking submit specific information
directly to consumer reporting agencies in order to have information resulting from
their trafficking experience blocked from their consumer reports (including credit
reports). This process launched on July 25, 2022 and is now available to many victims
and survivors in the United States.
What is a consumer reporting agency and what is a credit report?
In the United States, multiple private companies called consumer reporting agencies
(also known as credit reporting companies or credit bureaus) collect and store financial
data about individuals from creditors, such as lenders, credit card companies, and
other companies such as debt collection agencies.
Consumer reporting agencies compile this information about an individual’s financial
and other history, including criminal records, into a credit report or a consumer report.
The information contained in these reports is used for a variety of purposes including
to calculate an individual’s credit scores. Different companies calculate credit scores
using different mathematical formulas so an individual may have multiple different
scores depending on the source. For more information, see this CFPB resource.
Consumer reports and credit scores are then used by other companies to make a
variety of decisions including but not limited to:
●
whether to loan money to an individual;
●
what interest rates should be associated with loans or lines of credit;
●
whether to offer an individual insurance, rent a house or apartment to an
individual, or provide an individual with a utility or service; and/or
●
whether to hire a particular job applicant.
● The largest consumer reporting agencies in the United States are national
companies like Equifax, Experian, and TransUnion.
● Specialty consumer reporting agencies also exist and focus on areas such as
employment screening, tenant screening, check and bank screening, and
insurance.
● A list of consumer reporting agencies is available here.
What does it mean to block information from a consumer report? How
does blocking information impact an individual’s credit score?
By blocking information, the consumer reporting agency removes specific information
from a consumer report about that individual. Whether or not an individual’s credit
score is impacted by blocking information depends on the type of information that is
blocked from what consumer reports and what credit scoring formula is being used.
Click here for more information about credit scores.
It is important to note that information included on credit reports is gathered from
original sources known as information “furnishers,” such as banks, credit card
companies, or debt collection agencies. Through this new process, consumer reporting
agencies remove the information from the credit reports they create but do not
contact the furnishers of the information about the block, in the interest of survivor
privacy and security. This means that the furnishers may continue to disseminate the
blocked information in the future. Consumer reporting agencies may maintain an
internal record of the blocked information in order to prevent the same information
from being inadvertently reinserted into the report later.
● Everyone is entitled to free copies of their credit reports on a regular basis. Click
here for more information about how to obtain and monitor your credit reports.
● You also have the right to request other consumer reports.
Blocking Info from a Credit Report vs. Debt Forgiveness
Blocking information about a loan default or unpaid bill from a credit report does not
erase the debt with the company owed money (known as “the creditor”).
An advocate may be able to assist survivors in getting debts resulting from their
trafficking experience forgiven by the creditor(s) through other processes, including by
contacting creditors directly. However, this can take time and may not always be
possible. To get connected to legal services that may be able to provide help with debt
forgiveness, contact the National Human Trafficking Hotline at 1-888-373-7888, text
BEFREE (233733), or visit the online referral directory.
How long does information remain on a consumer report or credit report?
Most financial information included in a credit report is from the past seven years but
timeframes vary depending on the individual’s state of residence, the type of
information, and the consumer report. For instance:
●
Evictions are generally reported for seven years but some states prohibit or limit
reporting information about evictions.
● Bankruptcy filings are typically reported for 10 years but this timeframe may be
shorter or longer depending on the type of bankruptcy.
● Criminal convictions often have no time limit though this may differ based on
the state and the type of offense.
What information can survivors of trafficking block through the credit
process created by the Debt Bondage Repair Act?
If the information is presently included on a survivor’s consumer report and is the result
of trafficking, it may be blocked through this process.
The type of information that a survivor might want to have blocked could take different
forms including:
●
Prior evictions
●
Late rental payments
●
Credit card or loan defaults
●
Unpaid bills that went to a collection agency
●
Criminal convictions that were the result of a trafficking experience
●
Bankruptcy filings
Survivors of trafficking are able to self-identify what pieces of information on their
consumer reports are the result of trafficking. Other than a self-attestation that the
information is the result of trafficking, survivors do not have to submit additional
evidence to prove the connection.
Information that can be blocked could be related to consumer events that occurred
during
trafficking or
after exit
from trafficking, provided it is the result of trafficking.
Example Situation
Info that could be Blocked
During trafficking…
You could no longer afford rent for the apartment you
had rented before you experienced trafficking because
your trafficker controlled your finances. You were evicted.
Late rental payments
Loan defaults
Eviction records
Your trafficker(s) made you sign up for bank accounts in
your name that they used.
Account openings &
closings
You were arrested and/or convicted of a criminal act you
were made to commit by your trafficker(s).
Criminal records
After trafficking…
Your criminal record from your time being trafficked
prevented you from getting a new job. Without a steady
income, you could not pay your rent and were evicted.
Criminal records
Late rental payments
Eviction records
Your previous trafficker(s) used your identity
documents/information they had obtained during your
trafficking experience to open credit cards in your name
and never paid the bills.
Credit card defaults
Account openings &
closings
You sought medical treatment for trauma/injuries you
experienced during trafficking but were unable to pay off
your medical debt because the trauma/injuries
prevented you from working.
Unpaid bills that went to a
collection agency
INFORMATION REQUIREMENTS AND ELIGIBILITY
Who is eligible and what information is required?
Whether or not a survivor is eligible for this process does not depend on when they
experienced trafficking, what type of trafficking they experienced, or any demographic
factor. Any victim/survivor of human trafficking with U.S. consumer reports is eligible
for this process if they are able to provide the following required information:
1. Proof of identity.
○ Each consumer reporting agency sets their own requirements for proof of
identity. Examples that are likely to satisfy the requirements may include:
a copy of a driver’s license or another government-issued identification
card; a copy of a utility bill, bank statement, or insurance statement.
2. Victim Determination Document(s) from a government agency or authorized
non-governmental service provider.
○ This may be the most difficult for many survivors to obtain.
3. A list of specific pieces of information included on consumer report(s) resulting
from trafficking to be blocked.
More detailed information about each of these requirements and the process is
available in this resource.
We recognize that there may be many survivors who cannot provide all of the
information required (particularly, a victim determination document). We will continue
to advocate for this process to be accessible to as many survivors as possible.
What proof of identity are survivors required to submit?
Consumer reporting agencies need identifying information about the trafficking
survivor to ensure that they remove information from the correct credit report. Each
consumer reporting agency sets their own requirements for proof of identity and there
may be different requirements between companies.
Examples that are likely to satisfy the requirements for most companies include:
●
A copy of driver’s license, passport or another government-issued identification
document.
●
A copy of a utility bill, bank statement, or insurance statement.
Because trafficking survivors often do not possess particular identification documents
or might not have a consistent street address or access to other pieces of information,
consumer reporting agencies have been instructed to allow for flexibility for survivors
with different circumstances. In addition to accepting standard identification
documents, consumer reporting agencies are expected to allow for non-documentary
means of verifying identity such as asking the survivor questions that only that
individual would be likely able to answer.
● Consumer reporting agencies with excessive identification requirements can be
reported to CFPB through this online form.
What documentation of trafficking experience are survivors required to
submit?
Trafficking survivors are required to submit documentation that demonstrates that a
Federal, State, Local or Tribal government entity or authorized non-governmental
service provider has determined that they are a victim of trafficking (known as a “Victim
Determination Document”).
Because many trafficking survivors do not have documentation from a government
entity affirming their trafficking experience, government agencies are allowed to
designate non-governmental victim service providers to make these determinations
and provide documentation of their determination on behalf of the government entity.
Status Report: Victim Determination Documents from
Non-Governmental Service Providers
As of August 2022…
●
Very few non-governmental service providers have been authorized to provide
determination documents.
● We do not currently have a list of non-governmental service providers that
have been authorized but are working to identify these providers.
● In order to increase access to this process, it is critical that government
agencies move quickly to authorize service providers to play this role.
There is no single, exhaustive list of what documents will be accepted.
The following
are examples of documents that meet the requirements:
●
Certification Letters issued by the Department of Health and Human Services
●
Child Eligibility Letters issued by the Department of Health and Human Services
●
Documentation of continued presence issued by the Department of Homeland
Security
●
T Visas
●
U Visas with a Form I-918 Supplemental B filled out indicating that the individual
experienced trafficking
●
Criminal record relief court orders (such as a vacatur, expungement, or sealing of
records) where a victim of trafficking obtained an order to clear convictions of
criminal offenses they were forced or coerced to commit
●
Criminal human trafficking prosecution court records in which the survivor has
been identified as a victim (Records from prosecutions that do not include
trafficking-specific charges will not be accepted)
●
Civil suit decisions involving human trafficking in which the survivor is identified
as a victim
●
Restitution orders that provide a victim with compensation after a criminal
conviction for human trafficking
●
Documents issued by State government agencies affirming an individual is a
victim of trafficking (such as a Notice of Confirmation as a Human Trafficking
Victim issued by New York State)
●
Law enforcement affidavit or other documented statement/attestation from a
government entity
●
Documented statement/attestation from a non-governmental organization,
service provider, or human trafficking task force member that has been
authorized by a government entity to make this determination
●
Signed statement by the survivor attesting that they are a victim of trafficking
that is signed/certified by a government representative or a non-governmental
service provider that has been authorized by a government entity
Because consumer reporting agencies do not need detailed information of a survivor’s
trafficking experience, survivors are allowed to redact unnecessary details that may be
included in their documentation before submission.
●
As long as the redacted document still states that a government entity has
determined the individual is a survivor of trafficking, consumer reporting
agencies must accept documents in which details have been redacted.
How do government agencies authorize non-governmental service
providers to attest to an individual’s victim status?
The regulations governing this process, created by CFPB, specifically did not
“prescribe how a Federal, State, Local, or Tribal government entity may authorize
non-governmental organizations to make victim determinations,”
and stated that
“each
governmental entity may establish their own criteria for making such authorizations”
.
● Each government agency/task force is responsible for creating its own internal
process and policies around authorizing non-governmental service providers.
● This means that each government agency/task force, may have a different
process.
Status Report: Authorization for Non-Governmental Service Providers
As of August 2022…
●
We do not have information about specific authorization processes or policies
within government agencies.
● We encourage NGOs interested in obtaining authorization to reach out to
government agencies/law enforcement agencies with which they have
established relationships for more information on how to become authorized.
● We are actively working to advocate for the authorization of
non-governmental service providers and will provide updates as this system
develops.
THE PROCESS
How do you submit a request to block adverse credit information through
this process?
As of July 25, 2022 each consumer reporting company is required to publish
information about how to submit a request on their website. There may be differences
in the submission process by company.
Every consumer reporting agency is required to accept submissions through the mail.
Companies may choose to provide a secure online portal to accept submissions but are
not required to do so.
CFPB created a template letter for survivors to use when preparing their submissions.
Some consumer reporting agencies may include specific forms on their website.
When identifying items that should be blocked, be specific.
Include:
● The source of the information (such as the credit card issuer or bank).
● The type of item (such as credit account, checking account, criminal
conviction, utility account, etc.)
● Dates and account numbers associated with the information if possible.
Survivors may want to begin by submitting the required information to the three
largest consumer reporting agencies - Experian, Equifax, and TransUnion.
●
The credit reports created by these companies are widely used for a variety of
purposes.
Submissions to additional consumer reporting agencies can be made on a
case-by-case basis depending on a survivor’s specific credit history and their goals.
●
This list of consumer reporting agencies can be used to help prioritize.
● For more information about a specific consumer reporting agency, visit that
company’s website and/or contact them directly.
How long does this process take?
The regulations require that consumer reporting agencies take particular actions within
specific timeframes. The following chart contains more information about these
requirements.
Consumer Reporting Agency Action
Timeframe
Temporarily block the adverse information
from credit reports.
Within 4 business days of receiving*
the submission.
Contact the survivor or their representative
about any missing information or other
deficiencies in their submission (if needed).
Within 5 business days of receiving*
the submission.
Review the submission and make a final
determination about whether to maintain the
block permanently or rescind the block.
Within 25 business days of
receiving* the submission.
Notify the survivor of the outcome of the
determination and provide the survivor or
their representative with a copy of their
revised credit report (at no cost) through the
survivor’s preferred communication method.
Within 5 business days of making a
final determination.
*
Submissions sent via snail mail may take a few days in transit before being received.
How does a consumer reporting agency make a final determination about
whether to block the information?
Consumer reporting agencies can only deny or rescind a block in limited
circumstances:
1. The identity of the survivor cannot be reasonably confirmed;
2. The survivor did not provide documentation from an accepted source
determining that they are a victim of trafficking; and/or
3. The consumer reporting agency cannot identify the adverse credit information
to be blocked.
Survivors have the opportunity to appeal a consumer reporting agency’s denial and/or
revise their submission if needed.
● The consumer reporting agency is required to provide information about the
appeal process when they communicate their final determination.
Who should I contact if I have more questions about this process?
For questions about this process at a specific consumer reporting agency or about a
specific submission, contact that consumer reporting agency.
●
Contact information is available on the company's website.
For questions related to the regulations and general requirements, submit your
question to CFPB online at https://reginquiries.consumerfinance.gov/.
●
Select Reg V/Fair Credit Report Act (FCRA) from the dropdown menu.
● Reference "the trafficking rule, FCRA Regulation V and 12 CFR 1022.142" in the
body of the question.
To file a complaint about a specific consumer reporting agency's implementation of
this process, visit https://www.consumerfinance.gov/complaint/.
