Recently, Congresswoman Erin Houchin (IN-9) and Congressman Josh Gottheimer (NJ-5) introduced the Task Force to End Financial Abuse Act, a bipartisan effort to address the growing issue of coerced debt and financial exploitation. The proposed task force aims to develop a comprehensive approach to combat financial abuse, protect victims, and prevent future incidents.
Coerced debt occurs when one individual in an abusive relationship accumulates debt in their partner's name without their knowledge or consent. This form of financial abuse can leave victims trapped with ruined credit, overwhelming debt, and limited financial options, even after escaping an abusive situation.
"Addressing coerced debt requires a coordinated effort that goes beyond just tackling financial exploitation; it touches on abuse, consumer protection, and the ability to live free from financial control," said Congresswoman Houchin. "The Task Force to End Financial Abuse Act will provide a roadmap to better understand the scope of this problem and develop real solutions to help victims break free and rebuild their lives."
“Far too many survivors are trapped in abusive relationships where their spouse or significant other has run up the bills on credit cards or auto loans – often without their knowledge. As a result, they face destroyed credit, substantial payment expectations, debt collection, and even, bankruptcy. Financial abuse is often the last chain that binds a survivor to their abuser. This new Interagency Task Force on Financial Abuse will bring together relevant federal agencies and external stakeholders to address this crisis head on,” said Congressman Gottheimer. “When we protect survivors from financial abuse, we don’t just restore their credit — we restore their freedom and their future.”
The Task Force to End Financial Abuse Act represents a critical step toward breaking the cycle of financial control that affects so many victims of domestic abuse. Congresswoman Houchin and Congressman Gottheimer are committed to advancing this legislation, ensuring that survivors have the support they need and preventing future financial abuse.