Adverse information in cases of trafficking 15 USC s 1681c-3

Overview:

The section of the Fair Credit Reporting Act (FCRA) we’re looking at is designed to help protect individuals who have been victims of trafficking from having certain negative information reflected on their credit reports. It recognizes that trafficking can lead to adverse financial circumstances that are not the fault of the survivor.

Key Points:

• Blocking Information: This section requires credit reporting agencies to block reports of any adverse information that result from human trafficking. Adverse information might include debts that the victim did not create or was forced to incur by their traffickers.
• Documentation Requirement: For a trafficking victim to have adverse information blocked, they must provide the credit reporting agencies with correct documentation that confirms their status, such as a determination from a relevant agency or an authorized official.
• Credit Clean Slate: Once the credit reporting agency has been properly notified and has received the required documentation, they must ensure that the credit report reflects that the adverse information is a result of being a trafficking victim, essentially giving the victim a fresh start in terms of their credit history.

Impact:

• Protecting Creditworthiness: Trafficking victims often face ruined credit because traffickers may use their identities to incur debts or commit crimes, which can destroy their creditworthiness. This provision aims to restore their financial reputation by not allowing these circumstances to impact their credit reports.
• Supporting Recovery: By removing the burden of adverse credit information, the law empowers trafficking survivors to recover and rebuild their lives without being hindered by financial obstacles created by their traffickers.

Real-World Example:

Imagine someone named Maria, who was a victim of trafficking. Her trafficker took out credit cards in her name and racked up debt without her knowledge or consent. When Maria is finally free from the situation, she discovers these debts have damaged her credit score. Thanks to the provision in the FCRA, Maria can have these debts blocked from appearing on her credit report once she provides the necessary proof that she was a trafficking victim. This action allows her to work on rebuilding her life without the added stress of a credit score reflecting debts she did not willingly incur.