The 2022 Debt Bondage Repair Act (DBRA) created a brand new process for survivors of trafficking to petition to remove negative credit histories related to their trafficking experience from their credit reports. The law laid the groundwork for survivors to improve their credit and seek financial stability after trafficking. The DBRA does not just apply to debt incurred while they were trafficked, but any credit history related to their trafficking experience.
The process laid out in the DBRA and a subsequent regulation allows for survivors to petition for relief by submitting three documents to the major credit reporting agencies (Experian, Equifax, and TransUnion):
- A form of identification,
- A letter explaining the information to be removed from their credit report, and
- A victim determination document
Survivors can submit their application for credit repair on their own or with the help of an advocate, but their victim determination document (VDDs) has to be provided by a government entity or be signed by one. Survivors can submit three types of documents as VDDs:
- Government-issued documentation of victimization (like these),
- A letter from a government entity or an authorized non-profit/NGO, or
- A self-attestation signed by a government entity or authorized nonprofit/NGO.
The law included an important ban on credit reporting agencies requiring information from survivors about their trafficking experience, preventing them from having to share unnecessary details about their trauma.
Nonprofits or other non-governmental organizations can become authorized to provide VDDs by any government entity. There are common misconceptions that only one NGO in a state can be authorized or that only law enforcement can provide VDDs. In reality, the only limitation for providing VDDs is authorization. More authorized NGOs are needed to fill huge gaps in access to VDDs across the country for survivors applying for relief. If you work for an NGO that wants to get authorized, CAST can provide training and technical assistance.
Since the law went into effect, many challenges have arisen that prevent survivors from successfully applying for credit repair. The credit reporting agencies have not implemented sufficient processes for evaluating applications, resulting in inappropriate denials and a lack of remedies when applications are wrongfully denied. Many survivors have been unable to find acceptable VDDs because few government entities or authorized NGOs are providing them. These challenges have created unnecessary barriers to relief for survivors seeking credit repair. FNUSA and the Debt Bondage Repair Act Working Group are seeking feedback on the DBRA process from survivors and advocates who have tried to apply for relief. Help us improve survivors’ access to credit repair by filling out the survey here.
Trusted organizations have put out resources to help survivors and advocates apply for relief. Check out our Resource Library to learn more about the DBRA process.