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…
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.
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.
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.
Madam Speaker, I urge my colleagues to vote for this good bipartisan bill that will help victims.
Madam Speaker, I thought I reserved.
Madam Speaker, I urge adoption of this important measure, and I yield back the balance of my time.