Coerced Debt and Economic Abuse

Coerced debt occurs when an abuser (often a domestic partner or family member) forces a victim to open credit accounts or takes out loans in the victim’s name through threat, force, or manipulation. This is a form of domestic violence known as Economic Abuse.

The Legal Problem

Traditionally, banks treated this as a “civil dispute” between partners and refused to remove the debt. They would say, “You signed the application (even if at gunpoint), so you owe the money.”

New Protections

New York and federal regulators are increasingly recognizing coerced debt as a form of Identity Theft.

• NY State Law: Recent amendments allow victims of domestic violence to provide documentation (like an Order of Protection) to block coerced debt from credit reports.
• FCRA: If the debt was incurred without your voluntary consent, it may be challenged as factually inaccurate.

Litigation Strategy

We represent survivors of economic abuse to:

1. Block the Reporting: Force credit bureaus to suppress the coerced accounts.
2. Defend Lawsuits: If a creditor sues you for a coerced debt, we raise the defense of duress and lack of capacity.
3. Clear the Balance: Negotiate or litigate to have the debt declared void.

You should not have to pay for your own abuse.