CFPB Seeks to Remove ‘Coerced Debt’ From Victims’ Credit Reports

The Consumer Financial Protection Bureau is working on a rule that would allow domestic violence and elder abuse victims to expunge “coerced debt” from their credit reports.

Abusers can use the financial system as a tool of control by forcing victims to take on debts, through threats, violence, or other methods, the CFPB said Monday as it issued an advance notice of proposed rulemaking. Abusers in some instances will open credit card and other accounts in their victims’ names without permission, subjecting them to debts they often can’t afford, according to the CFPB.

To combat such financial coercion, the CFPB ...