Nationwide survey highlights impact of coerced debt on credit reports, financial security
WASHINGTON – A new report, Disregarded and In Debt: Understanding Barriers to Relief for Victims of Coerced Debt, released in connection with Domestic Violence Awareness Month, examines the devastating impact of coerced debt and how existing credit reporting laws fail to protect victims.
Coerced debt is a form of economic abuse that occurs when an abuser either fraudulently obtains credit in the victim’s name or uses threats or physical force to coerce the victim into taking on debt. It affects domestic violence survivors, as well as older adults, human trafficking victims, and children in foster care.
“Coerced debt creates financial insecurity, the leading reason survivors stay in or return to an abusive relationship,” said Andrea Bopp Stark, senior attorney at the National Consumer Law Center (NCLC). “This report shines a light on the need for laws to provide relief from coerced debt, an often hidden or disregarded form of economic abuse prevalent among domestic violence survivors.”
The report examines the results of a nationwide survey of over 200 direct service providers and identifies specific barriers that prevent victims of coerced debt from addressing the credit impact of coerced debt.
The effects of coerced debt can be insidious and long lasting. The debt damages credit histories, limiting victims’ ability to secure housing, employment, or new credit. Economic abuse can contribute to a state of dependency and fear.
To address the problem, over 20 state, local, and national organizations, including NCLC and the Center for Survivor Agency and Justice (CSAJ) formed the National Coerced Debt Working Group (CDWG). The CDWG conducted a nationwide survey exploring the experiences of survivors who try to address coerced debt on their credit reports.
The survey uncovered issues victims face when attempting to dispute and block coerced debt under the Fair Credit Reporting Act’s (FCRA). Common obstacles included difficulty obtaining documentation to support a claim of identity theft and an inability to prove the victim did not benefit from a coerced debt transaction. Many respondents noted the near impossibility of obtaining relief without legal representation.
“Too few victims of coerced debt are successful in blocking or removing coerced debt from their credit reports,” said Carla Sanchez-Adams, senior attorney at NCLC. “The survey results show that the credit reporting industry does not adequately respond to requests made by victims of coerced debt, and existing credit reporting laws and regulations fall short of addressing the unique challenges victims of coerced debt face.”
”States must step up to provide additional protection against coerced debt for survivors of domestic violence,” Sanchez-Adams added.
Related Resources
- Comments to CFPB’s ANPRM on Coerced Debt, March 7, 2025
- NCLC Model State Coerced Debt Law, May 1, 2024
- Coerced Debt Assessment Tool, 2024
- CSAJ Compendium on Coerced Debt, October 31, 2022
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