Many youth experiencing homelessness are also survivors of human trafficking. This blog post shares critical information about the new relief available for survivors of trafficking to repair their credit reports.
In May, NN4Y submitted comments to inform the new Consumer Financial Protection Bureau (CFPB) rule (policy) on how survivors of trafficking can request that financial reporting agencies remove information from their credit reports that resulted from their trafficking situation. The final rule has been issued by the CFPB and will help survivors avoid some of the financial consequences of human trafficking. The rule has established a process for survivors to repair their credit scores and prohibits credit reporting companies from providing a report containing adverse information.
Learn more from our partners at Polaris.
“Survivors often find that their credit reports reflect financial obligations and negative information that were the result of the financial abuse they endured, while being trafficked. Survivors and support organizations report that 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 will be unable to find affordable housing, become employed, or access credit on fair terms for purchases such as buying a car.”1
Key facts to know about the new process:
- Survivors are required to submit documentation from a government entity affirming their status as trafficking survivors.
- The final rule allows government agencies to designate victim service providers to determine that an individual is a survivor of trafficking for this credit repair process and to provide documentation of their determination on behalf of the government entity.
- With our partners, NN4Y is working to ensure that a broad group of entities can verify survivor status.
1 Consumer Financial Protection Bureau. (2022, June 23). CFPB Helps Survivors Mitigate the Financial Consequences of Human Trafficking. https://www.consumerfinance.gov/about-us/newsroom/cfpb-helps-survivors-mitigate-the-financial-consequences-of-human-trafficking/
