[Congressional Record Volume 167, Number 104 (Tuesday, June 15, 2021)]
[House]
[Pages H2785-H2787]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        DEBT BONDAGE REPAIR ACT

  Ms. WATERS. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 2332) 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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2332

       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:

     ``Sec. 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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from North Carolina (Mr. 
McHenry) each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I would like to thank the Committee on Financial 
Services ranking member, Mr. McHenry, for introducing H.R. 2332, the 
Debt Bondage Repair Act.
  Over the last year, working in a bipartisan manner, the Financial 
Services Committee has been engaged in an examination of trafficking 
issues of all types. As we heard at a recent hearing that delved into 
issues of human trafficking, which includes forced labor, sex 
trafficking and organ trafficking, victims of trafficking are not only 
abused physically and emotionally, but financially also.
  The moving testimony of Reverend Dr. Martin Hatcher, an advocate for 
sex trafficking survivors and a survivor himself, demonstrated how 
traffickers steal their victims' identities, open accounts in their 
names, run up credit card debt, purchase large ticket items like 
automobiles, and take out loans while pretending to be their victims.
  This financial exploitation is not only designed as a stream of 
finance, allowing the traffickers' operation to thrive, but it also 
inflicts long-term harm and asserts control over the victim.
  This bill, which aims to help survivors of human trafficking restore 
their credit and gain access to the consumer financial products and 
services that most of us take for granted, is an important step in 
restoring survivors' dignity and financial stability and in preventing 
revictimization.
  Specifically, the bill prohibits credit bureaus from including 
adverse information that resulted from human or sex trafficking in a 
victim's credit report. It directs the Consumer Financial Protection 
Bureau to develop a process to ensure that adverse information caused 
by their traffickers is not included in a victim's credit report. Such 
a process does not exist now and, given the importance that credit 
reports play in our economy, it makes it difficult for survivors in our 
communities to get a loan or even secure a job.
  As noted by the Survivor Inclusion Initiative of the Human 
Trafficking Focus Liechtenstein Initiative, we must ``facilitate 
survivor access to basic banking services, such as checking and savings 
accounts, and help survivors' financial recovery to become full 
financial participants in their communities.''
  Madam Speaker, for these reasons, I urge my colleagues to support 
this important bill, and I reserve the balance of my time.

                              {time}  1530

  Mr. McHENRY. Madam Speaker, I rise in support of H.R. 2332, and I 
yield myself such time as I may consume.
  Madam Speaker, debt bondage is a terrible crime, and many victims 
find themselves trapped in a perpetual cycle of forced labor and 
coerced debt because of it.
  Earlier this year, the House Financial Services Committee held a 
hearing where we focused on the financing of human trafficking. This is 
an area of bipartisan cooperation on the House Financial Services 
Committee. I want to commend my Democrat colleagues for leading this 
discussion and finding time on the committee docket for us to continue 
the conversation we have had over the last couple of Congresses.
  In that hearing, we heard from many powerful witnesses, including 
Rev. Dr. Marian Hatcher, who is a trafficking survivor. Rev. Dr. 
Hatcher had the courage to tell us her story, and because of it, we now 
have legislation that will help others.
  This is the way Congress is supposed to work. We are supposed to 
listen to experts and get ideas out of that on how we can construct 
legislation. Because of Dr. Hatcher, we know a lot more.

[[Page H2786]]

  Dr. Hatcher, like so many others in this country and around the 
globe, but in this country, in particular, fell victim to human 
traffickers. Thankfully, she was able to escape a terrible situation 
and restore her life.
  However, she struggled to reestablish herself because of a credit 
score, which was negatively affecting her whole financial life. She was 
affected by loans in particular that she was forced to obtain on behalf 
of her traffickers.
  So not only does she have to go through the emotional and social 
struggles, but she has this that is a weight around her. This is 
something where we can legislate and make her life and make the lives 
of trafficking survivors like hers better.
  You see, Madam Speaker, this is where traffickers trap a victim into 
a debt cycle. Traffickers will take out loans, open businesses, and 
destroy a victim's credit, which forces them to remain a victim until 
they pay off the debt.
  Now, you think this happens in other places around the globe. You 
think that this is some other country. No, it is here. It is here in 
our midst, and they are doing it through what seems like legal means.
  Too often, these victims are never able to get out. This is something 
that we have to be aware of and focus on.
  That is where this bill, the Debt Bondage Repair Act, comes in. This 
simple, 4-page bill has the potential to help thousands of victims 
every year by ensuring that a consumer reporting agency may not furnish 
a credit report with adverse information from a severe form of 
trafficking.
  While this does not erase the terrible crimes committed against them, 
it will help victims to regain their financial freedom and begin to 
rebuild their lives.
  I would like to note that this bill has a very tailored rulemaking 
provision.
  We want to fix this problem. We provide the CFPB a window of 180 days 
for rulemaking. This should be sufficient time to hear from all the 
stakeholders. But it is my hope that they will complete this rulemaking 
quickly so that the victims can get relief as soon as possible.
  I would like to thank the many victim advocates and consumer data 
industry representatives who provided technical assistance to get this 
bill where it is.
  I would say the difficulty of legislating is that you have to take in 
folks who are on opposite sides of an issue. Not that they don't care 
about the same issue, but you have folks that are on one side of a 
business and those advocates that see things differently. It takes time 
to bring them together to see what is a workable solution, maybe not a 
perfect solution, but a workable solution.
  I include in the Record statements of support from Shared Hope 
International, the National Center on Sexual Exploitation, Rev. Dr. 
Hatcher herself, and the Consumer Data Industry Association.

                                     Sharedhope International,

                                                    June 11, 2021.
     Letter of Support for the Debt Bondage Repair Act.

       Dear Ranking Member McHenry and Congressmembers Wagner, 
     Gonzalez, Taylor, and Hill: Traffickers financially benefit 
     from exploiting human trafficking victims through forced 
     labor and commercial sex, but also by exploiting their 
     victims' credit history. With credit cards, loan 
     applications, and access to financial services all dependent 
     on an individual's credit history, the impact of this 
     financial exploitation is both far reaching and long-term.
       We thank you for taking an important step in addressing 
     these harms by introducing and sponsoring HR 2332, the Debt 
     Bondage Repair Act (DBRA). The DBRA supports trafficking 
     survivors by preventing consumer reporting agencies from 
     issuing credit reports containing adverse information that 
     resulted from a survivor's victimization. This legislation is 
     essential to address the long-term impact of human 
     trafficking by eliminating adverse credit history that would 
     otherwise remain on a survivor's credit report. Most 
     importantly, the DBRA provides survivors an opportunity for 
     financial independence and stability that can help end the 
     cycle of exploitation.
       Good credit history is essential for opening bank accounts, 
     and applying for loans, credit cards, insurance, and housing. 
     Credit reports are also sometimes necessary for applying for 
     student loans, and utility and cellphone service contracts. 
     Individuals with adverse credit history and low credit scores 
     experience higher interest rates or denial altogether.
       Traffickers use coercion and control to financially exploit 
     their victims in various ways. One survivor described her 
     trafficker coercing her into obtaining a loan and then credit 
     cards by threatening the survivor's family. This left the 
     survivor with poor credit and more than $25,000 in debt. 
     Traffickers may also try to access credit that has not yet 
     been exploited by intentionally targeting younger victims. 
     One survivor recalled a trafficker targeting seventeen-year-
     old girls, who were about to turn eighteen because the 
     trafficker could exploit their fresh credit by having them 
     sign up for credit cards. In addition, as Rev. Dr. Marian 
     Hatcher powerfully recounted in her testimony to the House 
     Committee on Financial Services, traffickers may also use 
     their victim's credit to purchase expensive items, such as 
     cars. Traffickers also control their victim's bank accounts, 
     passwords, and use the victim's accounts to engage in 
     criminal activities. Consequently, financial institutions may 
     later deny the survivor services because of criminal 
     activity. Traffickers often exploit their victim's credit 
     history at a time when the victim is not present in the 
     formal economy and unable to build positive credit history.
       Trafficking survivors then experience adverse credit 
     history and burdensome loan obligations because of their 
     financial exploitation. Consequently, when survivors leave 
     their trafficking situations, they often cannot access 
     financial resources. Trafficking survivors report difficulty 
     opening bank accounts and obtaining safe housing, employment, 
     cars, and cell phones. Access to housing is especially 
     important to ending the cycle of vulnerability and 
     exploitation. In one study, 64% of trafficking victims 
     reported that lack of affordable housing prevented them from 
     escaping their trafficking situation. Lack of resources may 
     result in survivors returning to their exploitative 
     circumstances. In her testimony to the House Committee on 
     Financial Services, Rev. Dr. Marian Hatcher testified that 
     lack of resources leads to reexploitation because ``survivors 
     feel they have no option other than returning to the 
     commercial sex industry.'' Also, obstacles to accessing 
     financial resources and student loans may also hinder a 
     survivor's educational aspirations. This negatively impacts 
     the survivor's academic empowerment and long-term goals. 
     Furthermore, survivors may feel stigmatized or embarrassed 
     because of their poor credit. By preventing a consumer 
     reporting agency from reporting adverse information resulting 
     from a survivor's trafficking, the DBRA prevents a survivor's 
     credit report from becoming an apparatus for continuing 
     victimization.
       Poor credit due to financial exploitation has long-term 
     impacts on a survivor's ability to access financial 
     resources, build financial independence, and navigate life 
     after exploitation. The Debt Bondage Repair Act is crucial to 
     providing trafficking survivors a clean slate and path toward 
     financial independence. We support this critical legislation 
     and urge Congress to support trafficking survivors by passing 
     the Debt Bondage Repair Act.
           Sincerely,

                                              Christine Raino,

                                 Senior Director of Public Policy,
     Shared Hope International.
                                  ____



                         NCSE Letter of Support

       The National Center on Sexual Exploitation is grateful to 
     Rep. Patrick McHenry for introducing HR 2332, the Debt 
     Bondage Repair Act (DBRA) and to Survivor Leader Marian 
     Hatcher, whose testimony before the Financial Services 
     Committee inspired this solution.
       H.R. 2332 provides financial relief to victims of human 
     trafficking by preventing adverse credit reporting of 
     incidents which occurred while being trafficked. The ability 
     to move forward in life after tremendous adversity requires 
     financial well-being along with personal well-being. In 
     America, financial health depends on good credit. HR 2332 
     allows victims to put the past behind them and seek a much-
     needed fresh start. It is an excellent complement to the 
     Trafficking Victims Protection Act in supporting justice for 
     survivors.
       We look forward to working toward passage of this act as 
     well as continued efforts on behalf of trafficking survivors.
                                  ____



        Reverend Dr. Marian Hatcher Letter of Support: H.R. 2332

       Survivors spend a great deal of time trying to heal in ways 
     you would expect; physically, mentally, emotionally and 
     spiritually.
       However, another critically important aspect of healing is 
     often left unattended and impedes the path to holistic 
     health. That aspect is financial healing.
       In many cases, the lack of financial wellness causes 
     victims to have no option but to return to exploitive 
     situations.
       In other circumstances, survivors may be held civilly or 
     criminally liable for debt incurred during their trafficking.
       Any of these scenarios prevent the life of liberty and 
     wholeness that survivors yearn for and deserve.
       The Debt Bondage Repair Act will help provide survivors 
     with a viable chance at full wellbeing, inclusive of 
     financial stability and security.
       I strongly support this critical legislation and urge 
     Congress to support trafficking survivors by passing the Debt 
     Bondage Repair Act.
                                          Rev. Dr. Marian Hatcher.

[[Page H2787]]

     
                                  ____
                           Consumer Data Industry Association,

                                    Washington, DC, June 14, 2021.
     Hon. Maxine Waters,
     Chairwoman,
     Hon. Patrick T. McHenry,
     Ranking Member,
     Committee on Financial Services,
     House of Representatives, Washington, DC.
       Dear Chairwoman Waters and Ranking Member McHenry: I write 
     on behalf of the Consumer Data Industry Association in 
     support of H.R. 2332, the Debt Bondage Repair Act. This bill 
     will give victims of human trafficking and debt bondage the 
     ability to prove that they were victims of human trafficking 
     and financial abuse so they can remove that information from 
     their financial history.
       This bill will help to address the financial trauma victims 
     of human trafficking often endure. These victims should not 
     have to bear the burden of fraudulent debts and ruined credit 
     from their exploitation as they begin to rebuild their lives. 
     Any verified fraudulent data on a credit report should be 
     removed promptly from credit reports. In fact, the current 
     practice credit bureaus follow is to remove any verified 
     fraudulent data from reports. This bill will be 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.
       Thank you for your work on this legislation.
           Sincerely,
                                                Francis Creighton,
                                                  President & CEO.

  Mr. McHENRY. Additionally, I would like to thank Polaris for their 
support of this legislation.
  This is a great example of what happens when both parties work 
together. I want to thank Chairwoman Waters for her help and 
assistance, and her staff, the Financial Services Committee majority 
Democrat staff, for their help with my staff and the Republican 
minority staff on the House Financial Services Committee.
  We have a bipartisan solution to help trafficking victims pick up the 
pieces and begin a new life. I urge my colleagues to support this bill. 
I think this will be helpful to the lives at stake and let them rebuild 
their lives, not just financially but rebuild their lives.
  Madam Speaker, I yield back the balance of my time.
  Ms. WATERS. Madam Speaker, I have no further speakers, and I am 
prepared to close. I reserve the balance of my time until Mr. McHenry 
yields back.
  Mr. McHENRY. Madam Speaker, I urge my colleagues to vote for this 
good bipartisan bill that will help victims.
  The SPEAKER pro tempore. The gentleman from North Carolina has 
yielded back.
  The gentlewoman from California has the only time remaining.
  Mr. McHENRY. Madam Speaker, I thought I reserved.
  Madam Speaker, I urge adoption of this important measure, and I yield 
back the balance of my time.
  Ms. WATERS. Madam Speaker, I yield myself the balance of my time.
  Survivors of human trafficking face many obstacles to recovering from 
the physical, emotional, and financial abuse inflicted by their 
traffickers. The Debt Bondage Repair Act makes strides in assisting 
them to restore their credit and achieve financial reintegration into 
their communities.
  Congress can play a leading role in helping trafficking survivors to 
take back control. For that reason, I certainly urge both sides of the 
aisle to join me in supporting this important bill.
  I do want to take a moment to thank my ranking member, Mr. McHenry, 
for the leadership that he has provided on trafficking in general and 
on financial trafficking specifically. This is important legislation, 
and I am so pleased to be able to work with him, and I am so pleased 
that this bill has bipartisan support. I want to thank him for the work 
that he has done and will continue to do.
  I would also briefly note that survivors of trafficking are not the 
only individuals who are harmed by our broken credit reporting system. 
The system serves as a major barrier to economic opportunity for so 
many others. So we are going to continue working with Mr. McHenry, and 
I have scheduled a full committee hearing on June 29 to further explore 
these credit reporting challenges. I believe that our Republican 
colleagues will join with us to advance bold solutions to make the 
system fair for all of our constituents.
  Again, I am so pleased that the members of the committee have worked 
together. I urge my colleagues to support H.R. 2332, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 2332, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mrs. BOEBERT. Madam Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________