Gottheimer announces new bipartisan action and legislation to protect victims of financial abuse in domestic relationships

NEW JERSEY —  U.S. Congressman Josh Gottheimer (NJ-5) Monday announced new, bipartisan action and legislation to help put an end to financial abuse. Far too many victims are trapped in abusive relationships where a domestic partner has utilized financial abuse to — often unknowingly — destroy their credit, incur substantial payment expectations, and even be sent into bankruptcy.

As a result, victims are often left unable to get a job, rent an apartment for them and their children, lease a car, or get their own credit card or affordable loan.

This work builds on Gottheimer’s “Project Women’s Health” Initiative which helps protect choice, safeguard access to IVF, and combat rare diseases.

Financial Security is Key to Leaving an Abusive Relationship:

• The #1 obstacle to survivors safety is financial security.
• 99% of survivors are subjected to economic abuse — control of their financial resources by a harm-doer.
• 84% of survivors identify financial insecurity as their biggest barrier to safety.
• Survivors have an average of $10 in savings and only $289 they can access.
• Survivors have an average of more than 10k in abuse-related costs.
• On average, harm-doers steal $1,280/month from survivors.
• 58% of survivors report that a harm-doer has monitored, accessed, withdrawn from, or otherwise controlled their bank account.

Gottheimer’s new action to support survivors of financial abuse:

• First, Gottheimer announced new, bipartisan legislation with Congresswoman Erin Houchin (IN-9) to create an Interagency Task Force on Financial Abuse.
  • This taskforce will bring together relevant federal agencies and external stakeholders to address this crisis head on. It will be charged with identifying the scope and impact of coerced debt and financial abuse and develop additional recommendations for Congress and regulatory bodies like the CFPB to better protect victims.
• Second, as a member of the Financial Services Committee, Gottheimer is leading a new bipartisan letter to the Consumer Financial Protection Bureau or CFPB demanding that they take immediate action and issue new rules to support victims of financial abuse, domestic violence, and coerced debt.
  • The letter is signed by signed by more than forty Members of Congress.
  • This letter follows Gottheimer previously questioning the Director of the CFPB on financial abuse. After the hearing, the CFPB marked this issue as a “Long-Term Action item” — meaning no action anytime soon. That is simply unacceptable. Survivors cannot wait another year to rebuild their financial security and escape the violent grip of their abusers. This must be a top priority for the CFPB – and the letter demands that the CFPB act now to protect women and men in, and survivors of, financially abusive relationships.
  • The letter has received public support from the Center for Survivor Agency and Justice, Housing and Community Development Network of New Jersey, Jewish Women International, National Alliance to End Sexual Violence, National Consumer Law Center, National Council of Jewish Women, National Domestic Violence Hotline, National Network to End Domestic Violence, National Organization for Women of New Jersey, National Resource Center on Domestic Violence, New Jersey Citizen Action, New Jersey Coalition to End Domestic Violence.
• Third, in 2022, Gottheimer voted for and helped sign into law the Debt Bondage Repair Act.
  • This bipartisan legislation empowered victims of human trafficking to repair their credit by prohibiting consumer credit reporting agencies from reporting negative financial events that occurred as a result of abuse.
  • Gottheimer called on the CFPB to extend its efforts to include victims of other abusive relationships, such as intimate partner abuse.
  • Gottheimer also called on the three major credit bureaus must also take action. They should make recommendations to Congress on steps they plan to take, and what support they need from us, to help victims of financial abuse.

Gottheimer also announced he will also be working with New Jersey state legislators to support those facing financial abuse. Unlike other states across the country, New Jersey has failed to pass any laws taking action at the state level to support these victims of financial abuse.

“Far too many women and men 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. Today, we’re taking critical steps toward breaking that chain,” Gottheimer said. “When we protect survivors from financial abuse, we don’t just restore their credit — we restore their freedom and their future.”

“The National Coalition Against Domestic Violence says that 94% of women who are abused suffer economic abuse. Which means that they are penniless, homeless, and coming to us for things like shoprite gift cards so they can eat,” said Women’s Rights Information Center (WRIC) Executive Director Lil Corcoran. “Congressman Josh Gottheimer. Thank you.”

“We would like to thank Congressman Gottheimer for your leadership and support for course set legislation. Almost all survivors of domestic violence are affected by economic abuse, particularly in the form of forced debt. This burden significantly complicated their efforts to rebuild their lives after leaving their abuser. Survivors may be coerced, threatened, or forced into creating financial debt, creating financial obstacles that impede their ability to escape,” said New Jersey Coalition to End Domestic Violence (NJCEDV) Director of Advocacy, Housing, and Economic Justice Cearra Hart. “It is essential that all survivors are afforded opportunities for financial independence and autonomy. This legislation can restore hope, facilities and rebuild lives, and empower individuals and families so that they can live lives free of violence.”

“I want to thank Congressman Gottheimer for taking the lead on this, and I look forward to finally addressing this too long ignored injustice. With this legislation, abuse victims will be able to make a fresh start and move on with their lives with dignity at a time they do desperately need and deserve it,” said National Organization For Women New Jersey (NOW-NJ) President Jill LaZare

New Jersey Citizen Action thanks Congressman Gottheimer for making this issue of forced debt a priority; and for introducing legislation that will establish a congressional task force to investigate this form of financial abuse,” said New Jersey Citizen Action (NJCA) Financial Justice Program Director Beverly Brown Ruggia “We call on new jersey delegation and every Member of Congress to join Representative Gottheimer in the fight against coerced debt, a devastating form of final abuse that denies survivors of domestic violence and their families the financial means to restart their lives and to heal.”

Gottheimer was joined by Women’s Rights Information Center (WRIC) Executive Director Lil Corcoran; New Jersey Coalition to End Domestic Violence (NJCEDV) Director of Advocacy, Housing, and Economic Justice Cierra Hart; NJCEDV Director of Public Policy and Communications Nicole Morella; National Organization For Women New Jersey (NOW-NJ) President Jill LaZare; and New Jersey Citizen Action (NJCA) Financial Justice Program Director Beverly Brown Ruggia.