Coerced debt occurs when an abuser either fraudulently opens accounts in the victim’s name or coerces the victim into taking on debt they would not have otherwise obtained. This can be done by using threats, manipulation, or even physical force.
This report looks at one little-known method of collecting criminal justice debt—seizing income tax refunds—and highlights the financial harms for justice-involved individuals and their families when the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) are seized as part of that tax refund. This report: Summary of Recommendations: Federal and state governments…
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Every state has a set of exemption laws, intended to prevent creditors from pushing families into destitution. This report finds that few states’ exemption laws meet even the most basic standards.
Even though federal law prohibits nursing homes from requiring a third party to guarantee payment of their loved one’s bill, nursing homes still frequently pursue payment from friends and family. Nursing homes have been suing residents’ children, siblings, spouses, and friends for alleged debts for decades, but advocates report increased levels of aggression in recent…
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This National Consumer Law Center (NCLC) report provides an overview of the carceral medical debt problem and policy recommendations and solutions to address the issue. The report provides background on the nature of carceral medical debt, including the complex healthcare needs of people who are incarcerated, what fees are assessed and why, how these fees…
CFPB Should Modernize FTC Rule Addressing Abusive Creditor Collection Practices The FTC’s Credit Practices Rule protects consumers from abusive contract provisions that are designed to give the creditor an upper hand in collections and to evade legal protections for the debtor. The rule prohibits confessions of judgment, exemption waivers, irrevocable wage assignments, non-purchase security interests…
More than 27 million Americans do not have health insurance of any kind. A further 43% of non-elderly adults have inadequate insurance, which may have high deductibles or other significant out-of-pocket costs. In the meantime, health care costs and rates of medical debt continue to rise. It is more important than ever for states to…
UPDATE – July 2025 Since this report was published in January 2023, a number of states have passed legislation prohibiting credit reporting of medical debts. The CFPB also issued a Fair Credit Reporting Act regulation to prohibit medical credit reporting nationwide that was subsequently overturned by a court decision. These developments are discussed in…
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The U.S. Department of Education refers every eligible defaulted debt to one of 22 private collection agencies. Despite the history of consumer abuses by the collection industry, the United States government hires collectors not only to collect money, but also to communicate with borrowers about options to address student loan debt and to help borrowers…
This report discusses common problems faced by consumers experiencing debt collection for alleged rental debts as reported to the CFPB. It concludes with suggested actions to assist consumers with alleged rental debts.
This report discusses the intersections between the racial health gap and racial wealth gap, “charity care” or hospital financial assistance programs, and the harms of aggressive medical debt collection.
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A primer for advocates and policy makers INTRODUCTION The use of the criminal justice system to collect fines, fees, restitution, and other types of criminal justice debt has been condemned as punitive, self-defeating, discriminatory, and, in some cases, unconstitutional. Would use of the existing civil justice system be a viable alternative? The criminal justice system’s…
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