WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) has announced a new rulemaking initiative to tackle inaccurate credit reporting tied to financial abuse. This move is poised to help survivors of domestic violence, elder abuse, and coerced debt regain financial stability and access fair credit reporting practices.
CFPB Director Rohit Chopra emphasized the gravity of the issue, stating, “People trapped by domestic abuse must often sign documents under the threat of violence, ruining their financial lives and making it even more difficult to escape.” He added that expanding protections against identity theft could aid survivors in rebuilding their financial lives and prevent credit systems from being misused as tools of abuse.
The initiative follows reports of abusers exploiting coerced debt to exert control. Common tactics include forcing survivors to open accounts, sign financial documents under threat, or secretly accumulating debt in their names. These practices disproportionately affect women of color, who bear higher debt burdens and face more severe financial harm.
The CFPB has issued an Advance Notice of Proposed Rulemaking to gather public comments from consumer advocates, credit reporting agencies, and the general public. Key areas for input include the prevalence of coerced debt, barriers to accessing protections, and challenges faced by specific populations such as older Americans and foster children.
This rulemaking stems from a petition submitted by the National Consumer Law Center and the Center for Survivor Agency and Justice. It aligns with the CFPB’s efforts to create transparent processes for addressing consumer needs via petitions established in 2022. Public comments will inform a proposed rule as part of the next steps in tackling financial abuse through the credit reporting system.
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