On December 9, the Consumer Financial Protection Bureau (CFPB or Bureau) announced the launch of a rulemaking process addressing credit reporting on survivors of domestic violence, elder abuse, and other forms of financial abuse.
The CFPB’s Advance Notice of Proposed Rulemaking is in response to a petition submitted by the National Consumer Law Center and the Center for Survivor Agency and Justice. The petition asked the CFPB to amend the Fair Credit Reporting Act (FCRA) including: (1) modifying the definition of “identity theft” in Regulation V, which implements the FCRA, to include transactions “without effective consent”; (2) modifying the definition of “identity theft report” in Regulation V to include the modified definition of “identity theft”; and (3) clarifying that consumer reporting agencies (CRAs) cannot refuse to block coerced debt information. In 2022, the CFPB finalized a rule prohibiting CRAs from reporting negative information about survivors of human trafficking resulting from the trafficking. This new rulemaking builds on that precedent.
According to the CFPB, “coerced debt” is a form of economic abuse where abusers exert control by forcing their victims to take out loans, credit cards, or other financial products under duress. This can involve threats, physical violence, or manipulation, leading to substantial and long-lasting harm for the victims. The CFPB references studies that purportedly indicate that nearly three-quarters of domestic violence survivors remain in abusive relationships longer due to coerced debt, with women of color disproportionately affected.
As part of its rulemaking process, the CFPB is requesting public comments on the following:
- Prevalence and Impact: The CFPB seeks information on the prevalence and extent of harms caused by coerced debt, particularly through the credit reporting system.
- Credit Risk Relevance: The agency is interested in evidence regarding the relevance of coerced debt to a survivor’s credit risk.
- Access Barriers: Identifying barriers that prevent survivors from accessing existing protections under federal or state law.
- Specific Populations: Understanding the challenges faced by specific groups, including survivors of intimate partner violence, older Americans, and children in foster care.
- Documentation Requirements: Exploring potential documentation or self-attestation requirements for proving coerced debt.
The CFPB encourages consumer advocates, CRAs, and the general public to provide comments on these issues. The deadline for submitting comments is March 7, 2025.