When you think about domestic abuse, you may assume that this only refers to physical or emotional abuse. Unfortunately, many victims also endure financial abuse. To continue exacting power and control over their victims, abusers often commit identity theft or force victims to provide unfettered access to financial accounts. If this represents your circumstances, you may not even know that your partner has stolen your identity until after the relationship ends. It’s important to understand that you have legal options during these difficult times. The following blog explores coerced debt in further detail and explains the importance of working with a San Diego County domestic identity theft lawyer to explore your recovery options.
What Is Coerced Debt?
Generally, any time one person forces the other to accumulate debt, with or without their knowledge, it constitutes coerced debt. It’s important to understand that this is a form of economic abuse and often impacts romantic partners, but can also affect the elderly and those with disabilities. Common examples of coerced debt include, but are not limited to, the following:
- Opening accounts in the name of a victim without their consent
- Threatening the victim to make purchases or open an account
- Refinancing loans without the knowledge or consent of the victim
- Using credit cards without the victim’s consent
Unfortunately, many victims of coerced debt may not know that the debt in their name exists until they have been contacted by creditors regarding the owed funds. It’s also common for victims to assume that they have no legal options in these matters and must pay the debt. Similarly, many debt collectors are also eager to shift the blame onto the victim, even after learning they were coerced and the victim of economic abuse.
What Are My Legal Options as a Victim?
If you are a victim of coerced debt, it’s important to understand that the law is on your side in these matters. There are several rules and regulations that can help you during these matters, like the Electronic Funds Transfer Act (EFTA) which helps to limit your liability against unauthorized electronic transactions, or the Fair Credit Reporting Act (FCRA), which requires credit reporting agencies to investigate and remove fraudulent information from your report.
When you are contacted concerning a debt that was coerced or the result of identity theft, the first thing you should do is dispute the charge with the creditor. You should write an explanatory letter, including any documentation or evidence you have to support your claims. Next, you should check your credit report for fraudulent charges and repeat the process, sending a dispute letter to the reporting agencies.
Finally, you should connect with an experienced identity theft attorney from Barthel Legal. Our team understands how difficult it can be to recover from financial abuse, which is why we are committed to helping you through these difficult times. Contact our compassionate and dedicated team today to learn how we can help you in the fight to reclaim your credit.
