Debt Bondage Repair Act
Bill: S.2040 | Sponsor: Sen. Cornyn, John (R-TX)
Policy area: Finance and Financial Sector

Summary:
Debt Bondage Repair Act
This bill prohibits a consumer reporting agency from reporting adverse credit information about a consumer that is the result of severe human trafficking or sex trafficking. A court of competent jurisdiction or a federal or state government entity must determine that the consumer is a victim of trafficking.

To prohibit consumer reporting agencies from furnishing a consumer 
 report containing any adverse item of information about a consumer if 
    the consumer is a victim of trafficking, and for other purposes.

    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) Definitions.--In this section:
            ``(1) Trafficking documentation.--The term `trafficking 
        documentation' means--
                    ``(A) documentation of--
                            ``(i) a determination by a Federal or State 
                        governmental 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 the consumer is a victim.
            ``(2) Victim of trafficking.--The term `victim of 
        trafficking' means a person who is a victim of a severe form of 
        trafficking in persons or sex trafficking, as those terms are 
        defined in section 103 of the Trafficking Victims Protection 
        Act of 2000 (22 U.S.C. 7102).
    ``(b) Adverse Information.--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.
    ``(c) Rulemaking.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, the Director shall promulgate 
        regulations to implement subsection (a).
            ``(2) Contents.--The regulations issued pursuant to 
        paragraph (1) shall establish a method by which consumers shall 
        submit trafficking documentation to consumer reporting 
        agencies.''.
    (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:

``605C. Adverse information in cases of trafficking.''.
    (c) Applicability.--The amendments made by this section shall apply 
to any trafficking documentation, as defined in section 605C(a) of the 
Fair Credit Reporting Act, as added by subsection (a) of this section, 
provided on or after the date that is 30 days after the date on which 
the Director of the Bureau of Consumer Financial Protection promulgates 
regulations pursuant to subsection (c) of section 605C.
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