[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.
____________________