Financial industries can play a vital role in facilitating economic growth and stability 

As Canada marks National Human Trafficking Awareness Day on February 22, Victim Services Toronto (VST) – a non-profit organization that provides case management, advocacy and crisis response for human trafficking survivors – is breaking new ground by achieving first-of-its-kind support from within the financial industry to propel positive change around fraudulent and coercive debt for human trafficking survivors. These unique collaborations can help survivors in the transition to reclaim their lives. 

Finance influences each stage of human trafficking from luring at the beginning of the cycle to the revictimization of survivors who manage to escape their situation. And the issue is not going away on its own. Human trafficking, and sex trafficking in particular, affects every community in Canada with children and adults being forced to sell their bodies and even recruit other unsuspecting innocent young people. Aside from the horrific impact on victims, survivors and their loved ones, human trafficking also impacts the Canadian economy through law enforcement costs, healthcare and social services costs and effects on Canadian financial systems. But change is happening.  

VST recently hosted two ground-breaking financial roundtables to help change the narrative for human trafficking survivors. More than 40 participants heard from a survivor who shared firsthand experiences about the financial hurdles she faced upon escaping her abusive situation, including being saddled with fraudulent debt. Averaging C$20,000 per victim, this debt prevents survivors from starting a new life by drastically impeding their ability to access necessities such as housing, education and employment. The devastating emotional implications mean that this debt often drives survivors back to their abusers. 

Blueprint for Change 

“The VST financial roundtable is a strong example of the power of collaboration on this issue to make a meaningful difference,” says Carly Kalish, Chief Executive Officer, Victim Services Toronto. “This is the first time VST has brought together a diverse cross section of stakeholders – financial institutions, credit bureaus, government agencies, survivor-serving organizations and survivors of human trafficking – who are all connected to the complex problem of coercive and fraudulent debt and how it revictimizes survivors of human trafficking. This roundtable is an essential first step in propelling vital change.”  

The roundtable identified opportunities for assisting human trafficking survivors such as collaborating on new products and services within the financial industry, and continuing co-operation to propel change. Two impactful programs already making a difference were highlighted as best practices offering a blueprint for change – VST’s Reclaim program which supports Canadian survivors of human trafficking by removing coercive debt from their names and records; and Ontario’s passing of Bill 41, entitled the Protection from Coerced Debts Incurred in relation to Human Trafficking Act. 

• Reclaim: Guided by a peer advisory committee, Reclaim supports Canadian survivors of human trafficking by removing fraudulent or coercive debt from their names and records. Oftentimes, traffickers will steal the identity of their victim or force them to borrow money for cell phones, hotel rooms and transportation – the very tools used to exploit them. By burdening their victims with debt, the traffickers are able to cover their tracks and avoid detection or persecution. Through Reclaim, VST advocates on behalf of survivors to remove this unfair debt, collaborating with several of Canada’s leading banks, creditors, Equifax, Transunion, and government agencies including Public Safety Canada and Women and Gender Equality Canada. To date, this first-of-its-kind program has helped remove C$1 million in fraudulent debt, which represents 90 per cent of money owed by VST clients. And a recent, three-year grant from TD Bank Group (TD) will allow vital program expansion. 

“At TD, we are committed to helping make a positive impact for the customers and communities we serve,” says Alicia Rose, AVP, Social Impact & Strategy, Sustainability & Corporate Citizenship, TD Bank Group. “One way we do this is by supporting organizations like Victims Services Toronto (VST) that focuses on providing victims and survivors of human trafficking with critical resources to help them rebuild their lives with security and opportunity. Through our corporate citizenship platform, the TD Ready Commitment, we are proud to support the expansion of VST’s Reclaim program designed to provide immediate financial relief and help those affected by human trafficking reclaim feelings of freedom, healing, and self-determination.” 

• Bill 41: Driven by the needs of survivors, VST, and other key stakeholders, including the Canadian Bankers Association (CBA), generated widespread political and public support for Bill 41 which passed unanimously in December 2023. The Bill compels financial institutions and collection agencies to forgive coerced debts accrued by victims as a result of human trafficking and erase these debts from survivors’ credit reports. The Bill garnered historic all-party support in the Ontario Legislature – with Progressive Conservative, NDP, Liberal and Green Party members unanimously backing the legislation. This rare cross-party consensus, achieved in record time, was made possible through the VST’s and the CBA’s advocacy, which contributed to the widespread support for the Bill providing survivors with these crucial protections. Now VST, CBA, and other key stakeholders are working tirelessly to advocate for the adoption of similar protections across Canada. 

“Ensuring the financial success of all Canadians is a fundamental principle of the banking industry in Canada,” says Anthony Ostler, President and Chief Executive Officer of the Canadian Bankers Association. “The Protection from Coerced Debts Incurred in relation to Human Trafficking Act (Bill 41) extends this support to survivors of human trafficking, enabling them to rebuild their lives free from the burden of unfair and insurmountable debt. Ontario is just the beginning, and we are committed to collaborating with organizations like the Victim Services Toronto (VST) to create a safer, more equitable financial environment for all, ensuring that survivors have the resources and support they need to thrive.” 

The Crucial Role of All Canadians  

Often, sex trafficking begins because of deception around a perceived debt. A young person is pursued by a supposed love interest who offers expensive gifts, trips, meals out and promises of a future together. After the calculated, so-called ‘relationship’ ends, the targeted victim is asked to repay an exorbitant bill. Unable to reimburse and ashamed of their situation, many are coerced into sex trafficking to pay off their supposed debt.  

VST suggests there is an important role for all Canadians to play in helping to stop sex trafficking by communicating openly with loved ones and being aware of the warning signs:  

• Someone having new and expensive items that they cannot afford  

• Suddenly being flush with cash  

• Having multiple credit cards or cell phones 

• Living a lavish lifestyle, well beyond their means  

From the Roundtable to Your Kitchen Table 

“At every level of society, we have an opportunity to work together to help end human trafficking and support survivors,” adds Kalish. “This Human Trafficking Awareness Day, VST is encouraging public support through building awareness of the issue and welcomes donations from individuals and corporations to join the fight. Please commit to helping make a difference.” 

To learn more about Victim Services Toronto, and its many programs helping human trafficking survivors, please visit www.victimservicestoronto.ca.