The CFPB finalized amendments to Regulation V (Fair Credit Reporting) which allow victims of human trafficking to have any related adverse information removed from their consumer reports. The changes are effective on July 25, 2022.
The National Defense Authorization Act prohibits consumer reporting agencies from furnishing adverse information within a consumer report …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. It also required the CFPB to issue rules for what information consumers would need to submit to consumer reporting agencies and how they could do so.
These changes detail the information human trafficking victims must provide and the methods by which they need to be allowed to do so. The rule also outlines requirements and restrictions for consumer reporting agencies to receive and act upon notice that any adverse information is the result of human trafficking. Consumer reporting agencies must also post information on their websites, informing the public on how human trafficking victims can block adverse information from being reported.
The CFPB also put out a “Fast Facts” document that gives a high-level overview of these changes. While these changes do not impose any additional requirements on financial institutions, human trafficking is a heinous crime and financial institutions are needed on the front lines to help with detection and prevention. Unfortunately, we see constant reminders that human trafficking continues to run rampant so make sure any potential red flags are incorporated into your BSA/AML training programs.
Published
2022/06/30
