When you hear the term domestic abuse, you may think about physical or emotional abuse between two romantic partners. While this is unfortunately very common, there are other kinds of abuse that can occur in close relationships. One such matter is financial abuse, which can lead to coerced debt. Unfortunately, removing from these matters can be difficult, so it’s in your best interest to keep reading to learn more about this kind of debt and the importance of working with an Arroyo Grande consumer lawyer to explore your legal options during these upsetting times if you discover that you are a victim of this form of abuse.
What Is Coerced Debt?
Coerced debt is a form of economic abuse that occurs when someone opens accounts in the name of another person to accumulate debt. Though this often impacts couples in romantic relationships, it can also occur when a parent opens an account in their child’s name, or if a caretaker opens debt in the name of an elderly or disabled individual. Examples of coerced debt include:
- Using the victim’s credit or debit cards without their knowledge or consent
- Forcing a victim to open a new account for the abuser through threats or manipulation
- Refinancing the victim’s debt without their knowledge or consent
Unfortunately, many victims of this kind of base do not know about the debt until after the relationship ends or until they are contacted by a collector in regard to a debt in their name that they don’t recognize. Many victims also do not realize they have legal options during these circumstances.
Are There Any Steps I Can Take to Remedy These Matters?
Though it can feel as though you are solely responsible for the debt accumulated in your name, it’s important to understand that the law is on your side. As a consumer, you should familiarise yourself with the Electronic Funds Transfer Act (EFTA) which helps limit your liability when unauthorized electronic transfers are made in your name. Additionally, you can rely on the Fair Credit Reporting Act (FCRA), which helps guarantee the accuracy of your report, allowing you the opportunity to dispute incorrect or fraudulent charges on your report.
It’s important to understand that when you find that you have been impacted by coerced debt, the most important thing you can do is immediately dispute the debt with both the creditor and the credit reporting agency. You can explain the circumstances and include any evidence you have to support your claim.
Unfortunately, fighting the inclusion of this debt on your report can be challenging. That is why working with an experienced consumer defense attorney is in your best interest. At Loker Law, APC, our compassionate and dedicated team of attorneys understands how setting these matters can be, which is why we will do everything in our power to help you fight for the best possible outcome. When you need assistance, our team is here. Contact us today to learn more.
