Daniel Rosen exposes a credit-repair scam that files fake human-trafficking claims to get negative items deleted from credit reports. Scammers exploit the Debt Bondage Repair Act meant for actual trafficking survivors, telling bureaus it's a glitch. The FTC has cracked down on similar schemes before.
I was really shocked when I heard about them filing fake human trafficking claims. That's really creepy.
Human trafficking is the newest, ugliest variant of all of this. And so basically, like, in 2021, Congress passed the Debt Bondage Repair Act, which created the FCRA. And because trafficking survivors often came out with destroyed credit, evictions, default, unpaid bills, this allowed for them to get back on their feet and to exploit that particular aspect of the FCRA and the, and the Bondage Repair Act. It's dirty. It is very dirty. The scam in practice is just like they'll take it off the report and it has a higher likelihood of getting it off, and it's pitched as this glitch, but they're doing it in all the wrong ways. Like, to lie about fake trafficking claims, this happening at the astronomical levels it— that it's happening at, this is— they're going to come down on this stronger than all the other times that they've been coming down on this just through like fake FTC identity theft reports.
