Coerced Debt Traps Domestic Violence Survivors, Hinders Financial Freedom: New Report Reveals systemic Barriers to Relief
WASHINGTON – October 28, 2025 – A new report released today highlights the pervasive and damaging impact of coerced debt on domestic violence survivors and other vulnerable populations, revealing important shortcomings in current credit reporting laws. The report, titled Disregarded and In Debt: Understanding Barriers to Relief for Victims of Coerced Debt, released by the national Consumer Law Center (NCLC) in conjunction with Domestic Violence Awareness Month, details how abusers leverage financial control to maintain power and how victims struggle to untangle themselves from the resulting debt.
Coerced debt occurs when an abuser fraudulently opens credit accounts in a victim’s name or uses intimidation and force to compel them to take on debt. This insidious form of economic abuse impacts not only domestic violence survivors, but also 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,” explained Andrea bopp Stark, senior attorney at the NCLC. “This report shines a light on the urgent need for laws to provide relief from coerced debt, an ofen hidden or disregarded form of economic abuse prevalent among domestic violence survivors.”
The report is based on a nationwide survey of over 200 direct service providers and identifies critical obstacles preventing victims from resolving the credit damage caused by coerced debt. The consequences are far-reaching, impacting access to housing, employment, and future credit opportunities, perpetuating a cycle of dependency and fear.
Recognizing the scope of 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) to investigate the issue. Their survey revealed that victims face significant hurdles when attempting to dispute and remove coerced debt under the Fair Credit Reporting Act (FCRA).
Specifically, respondents reported difficulty gathering sufficient documentation to prove identity theft or demonstrate they did not benefit from the coerced transactions. The report emphasizes that navigating the process often requires legal representation, a resource unavailable to many victims.
“Too few victims of coerced debt are triumphant in blocking or removing it from their credit reports,” stated 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 they face.”
Sanchez-Adams further urged states to enact additional protections for survivors of domestic violence against coerced debt. The report underscores the need for systemic changes to better support victims and hold abusers accountable for this damaging form of financial abuse.
