The Debt Bondage Repair Act, H.R. 2332, introduced by Ranking Member Patrick McHenry (R-NC), passed the House of Representatives on June 16, 2021. The bill will give victims of human trafficking and debt bondage the ability to prove that they were victims of financial abuse so they can remove any adverse information from their financial history as they try to repair their lives. CDIA is grateful that Mr. McHenry was able to find a balance between helping victims and providing a system that will work for the credit bureaus which must implement the law.

These victims should not have to bear the burden of fraudulent debts and ruined credit from their exploitation. Under the bill, verified fraudulent data on a credit report can be removed promptly from credit reports, not unlike processes in place today by the credit bureaus. However, due to the opaque nature of proving that one was a victim of human trafficking and financial abuse, it has been difficult for CRAs to separate the fraudulent actors from the true victims. This bill is helpful as it will specifically acknowledge in the law that these kinds of abuses occur and that the resulting tradelines should be deleted from reports. This bill will give the CFPB authority after review of documents that verify the exploitation, to grant the victims clemency and have the adverse data removed.

We hope that this bill will provide the financial relief that these victims need and rightfully deserve, and we will continue to work with members of Congress to fund solutions for consumers.