The Consumer Financial Protection Bureau (CFPB) announced on Monday the start of a rulemaking process aimed at protecting victims of domestic violence and elder abuse, addressing how financial coercion can exacerbate their vulnerability. The agency highlighted that victims are often forced to take on debt or open financial accounts under duress, creating lasting financial hardship.
This move is significant as the CFPB continues advancing its regulatory agenda in the final weeks of President Joe Biden’s administration. Unlike other financial regulators, the bureau’s ongoing rulemaking could either face challenges under the incoming administration of President-elect Donald Trump or gain bipartisan support due to its populist appeal. The CFPB cites that nearly 75% of domestic violence survivors report staying in abusive relationships longer because of coerced financial obligations.
“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,” said CFPB Director Rohit Chopra. He added that expanding protections against identity theft could help survivors rebuild their financial independence and ensure the credit reporting system is not exploited for abuse.
The CFPB’s announcement includes an advanced notice of a proposed rulemaking, inviting public comments. This marks the first step toward formalizing protections that could offer vital financial relief to victims of abuse and coercion.
Also read: Kennedy Center Honors Raitt, Coppola, Sandoval, Grateful Dead, Apollo
