On June 23, 2022, the CFPB issued a final rule to help survivors avoid some of the financial consequences of human trafficking. Through the final rule, the CFPB has established a method for survivors of trafficking to submit documentation to credit reporting companies that identifies any adverse item of information that resulted from human trafficking. The rule prohibits credit reporting companies from providing a report containing the adverse items of information.
The final rule updates the Fair Credit Reporting Act’s implementing regulation to ensure it meets the Debt Bondage Repair Act’s credit reporting requirements. The Debt Bondage Repair 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.
The final rule, which will take effect on July 25, 2022, will:
Provide guidance to survivors on the “trafficking documentation” they need to provide to credit reporting companies;
Provide guidance to survivors on reporting status as having experienced a form of trafficking;
Require credit reporting companies to block adverse information in credit reports; and
Applies to all credit reporting companies.
Read the CFPB’s press release here.
The final rule Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking can be found here.