Starting next week, a new law seeks to make it easier for victims of some financial crimes to clear their name. It’s meant to help people who are forced into debt by a loved one, or in some cases, they don’t even know about it.
Victims of coerced debt will have a new way to fight back and clear their credit thanks to a new law starting Jan. 1.
In cases where victims either did not knowingly take on the debt or were forced into, creditors can no longer hold them liable.
“It puts a pause on any collection’s agency taking action until they can get things straightened out,” Rep. Tom Delnicki (R-South Windsor) said.
Delnicki is a ranking member of the legislature’s banking committee, which has been considering action for years on coerced debt.
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Coerced debt can take on two forms, often with the victim knowing the perpetrator.
Loved ones or caretakers can take out credit cards, loans or other debt without the victim’s knowledge. In other cases, they force the victim to agree to it.
The bill finally garnered approval from the legislature, thanks to advocacy from people like Karen Robbins.
Robbins is an attorney who, until recently, worked in elder law. She was also a victim of coerced debt, though, saying her ex-husband took out credit cards in her name and leveraged their home, all in her name.
She learned about the debt in 2020 – estimating the figure as hundreds of thousands of dollars -- and has spent years trying to clear her credit. She admits feeling trapped at times.
“I had no credit cards,” she said. “I couldn’t lease an apartment. I couldn't lease a car.”
The fight continues – she was finally able to get a credit card in her name just two months ago.
“I cried when a credit card came in the mail for me,” she said.
Robbins said that if an attorney like her can be a victim, anyone can be coerced into debt by a loved one.
“You know you trust the person,” she said. I'd known him since we were 14 years old.”
Delnicki said the law helps victims fight back and clear their names.
If someone claims they were coerced into debt, the creditor has to launch an investigation. The law also requires any legal proceedings be put on hold for the investigation.
Victims who were coerced into debt are not liable to pay it back. Instead, that responsibility falls on the person who forced the debt.
Advocates focused on domestic violence and financial abuse during the legislative process, but Delnicki said he believes the law can also be used in cases of elder abuse.
