If not, those trust ratings do not truly define the person. There is always a second chance given to everyone, and there is a benefit of doubt if the person, after receiving all those bad ratings, still continues to do some good in the community.
It might be hard to trust them when it comes to financial deals, but they can still make some good names even with those negative ratings by being productive in any way that they can, and people can confirm the value of their contribution.
Incorrect, the second chance is only happen for big user which has been trusted for long especially if you have a power e.g. DT1, gangs, earn merit regularly, have many positive feedback etc. If you're just an Average Joe who don't have anything, when you receive red tag, your career is over. Want to see the proof? you can open a new account and try to scam, then try to earn merit with that account.
Many merit sources or users don't like to meriting a negative tag account.