A Way Forward.

Human traffickers coerce their victims to use their credit cards. They use their victims’ money to buy cell phones, hotel rooms, and transportation that make trafficking possible and help cover the trafficker’s tracks.

When trafficked individuals manage to exit and get to safety, they have an average of $20,000 of coerced debt tied to their name. This debt is a red mark on their credit reports and makes it impossible for them to obtain student loans or secure housing needed to move forward with their lives. 

In 2022, Victim Services Toronto acquired Reclaim, a national organization that works with survivors to eliminate fraudulent and coercive debt. In 2023/24, The Banking and Credit industry, including the Canadian Bankers Association, Equifax, and Transunion, supported our effort to educate creditors about the impacts of coercive debt. 

We also worked to eliminate the systemic barriers between survivors and their good name. 

In 2023, Victim Services Toronto (VST) worked with political and industry leaders to build support for Bill 41, The Protection from Coerced Debts Incurred in Relation to Human Trafficking Act.  Bill  41 was co-sponsored by MPPs from every political party.

A human trafficking survivor and Reclaim advisor deputed at the province's Standing Committee on Social Policy, providing a first-hand account of how coercive debt occurs and its devastating impact on survivors. 

Bill 41 was unanimously passed in 2023, a significant milestone that compels financial institutions and collection agencies to forgive coerced debts and erase them from survivors' credit reports. This is a reassuring step towards a more hopeful future for survivors. 

The impact of Bill 41 is spreading across the country. Similar legislation has been proposed in Saskatchewan, and VST has consulted with the Attorney General of British Columbia and the Crown's office in Quebec to legally enshrine the protection of human trafficking survivors victimized by fraudulent or coercive debt.