On December 27, 2021, President Biden signed into law the Debt Bondage Repair Act (DBRA), which removes economic barriers for survivors of human trafficking. Debt bondage occurs when a trafficker uses a person’s debt to force them to continue being trafficked to pay off their debt. This debt can prevent survivors of human trafficking from doing necessary things that require credit scores like renting apartments, getting sources of credit, gaining access to basic banking services, and being employed. When debts are reported to credit reporting agencies, that adverse information appears on every credit history that the agency gives. When credit scores and histories are affected by debt bondage, it leaves survivors with fewer options, increasing the chance for them to return to the exploitive situations, further preventing people who are being trafficked from exiting their exploitation.
The DBRA prevents credit reporting agencies from reporting information relating to a debt that was created by or used to perpetuate human trafficking. This newly enacted law allows for survivors of human trafficking to submit paperwork that certifies them as “victims of severe forms of human trafficking” from a state or federal agency. After submitting that paperwork, according to the Fair Credit Reporting Act, credit reporting agencies are no longer allowed to show that debt as adverse information affecting a credit score.
The CSE Institute applauds members of Congress for recognizing and acting on this need for survivors of human trafficking. Debt bondage effects survivors of human trafficking even after they have exited the life. Financial stability is an important factor for survivors when they are exiting the life, and this legislation is an amazing step into creating that stability. However, financial stability is only one long term consideration for survivors who have or are trying to exit the life. The CSE Institute urges Congress to consider more long term needs of survivors such as: medical care, education, financial support, vacatur of criminal records, among other necessities.
All views expressed herein are personal to the author and do not necessarily reflect the views of the Villanova University Charles Widger School of Law or of Villanova University.