New York, NY – Assemblymember Linda B. Rosenthal (D/WF - Manhattan) announced today that her bill creating a mechanism for survivors of domestic violence to free themselves of debts forced upon them by their abuser was signed into law. The bill was sponsored by Cordell Cleare in the state Senate.

“With the signing of this law, survivors can finally be freed from the debts illegally incurred in their name by their abuser,” said Assemblymember Linda B. Rosenthal (D/WF – Manhattan). “After escaping domestic violence, too many survivors struggle under the weight of debts taken out in their name by their abuser. These debts also erode credit scores, cruelly preventing countless survivors from getting an apartment, a car and and taking the necessary and urgent steps in establishing a new life.”

Coerced debt is a common form of economic abuse whereby an abuser uses manipulative and coercive tactics to force a victim to incur debt. The practice is commonly seen in domestic violence and human trafficking cases, but also occurs between older adults and their caretakers and in other familial relationships. Examples of coerced debt include forcing a person to sign loan documents, opening a credit card, committing public benefits fraud or other actions that would provide a financial benefit to the abuser and entrap the victim. In most cases, survivors are left without recourse and are saddled with the debt. 

The law, which takes effect in 180 days, establishes a process for individuals to dispute coerced debts with lending institutions. Upon notice to a lender that a debt was coerced, the survivor will be required to submit documentation that a debt was coerced, which can include a police report, a report filed with a federal, state or local law enforcement agency, like an identity theft report, or a written statement from a qualified third party. If the subsequent investigation finds that the debt was coerced, the debtor will no longer be held liable, eliminating their payment obligation, ceasing any collection activity and preserving their credit score. Further, the law provides a private right of action to lenders to collect money owed by the abuser, or to the survivor who previously paid the coerced debts.

With the signing of this law, New York State becomes the sixth state to provide this protection to survivors of domestic violence. A 2024 study that examined economic abuse globally found that 50% of survivors were forced to take out a loan or use credit and 43% said that their partner built up debt in their name. The New York State Gender-Based Violence dashboard shows that nearly 275,000 calls were placed to domestic violence hotlines across New York State last year, demonstrating the epidemic of domestic violence and underscoring the need for these protections. 

The law was supported by a vast coalition of domestic violence prevention organizations and advocates for older adults including the Urban Resource Institute, HerJustice, CAMBA, Legal Aid Society, AARP, Center for Elder Law and Justice and the New York State Coalition Against Domestic Violence. 

“Our laws often address the physical impacts of domestic violence – however, emotional and financial abuse is just as prevalent and dangerous,” said Assemblymember Rosenthal. “This law breaks the financial ties and burdens that far too many survivors carry, providing a path to safety for both them and their families. I am extremely proud of our efforts to turn this bill into law, and I thank the many advocates for their unyielding support in working to carry this legislation over the finish line."