Above: Gottheimer at the Women’s Rights Information Center announcing new action to protect victims of financial abuse.

ENGLEWOOD, NJ — Today, Monday, September 23, 2024, U.S. Congressman Josh Gottheimer (NJ-5) 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.

Video of the announcement can be found here

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• 58% of survivors report that a harm-doer has monitored, accessed, withdrawn from, or otherwise controlled their bank account.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,” said Congressman Josh Gottheimer (NJ-5). “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.

Below: Gottheimer at the Women’s Rights Information Center announcing new action to protect victims of financial abuse.

Gottheimer’s remarks as prepared for delivery below:

Good morning, everyone, and thank you for joining us here this morning.

Before I begin, I want to say that it’s a honor to be here at the Women’s Rights Information Center in Englewood. The dedicated employees and volunteers at this center provide critical services — from career guidance and legal consultation to crisis support and victims’ advocacy — all of which improve the health, safety, and well-being of countless people in need here in our state. Your work is a lifeline to so many, and I can’t thank you enough for helping improve the lives of countless people in need. 

I’m here today to announce new bipartisan action and legislation I’m leading to help put an end to financial abuse because no one should have to choose between their physical safety and their financial well-being. 

This work builds on my “Project Women’s Health” Initiative which I’ve launched to help protect choice, safeguard access to IVF, and combat rare diseases. Next week marks the beginning of Domestic Violence Awareness Month and Financial Exploitation Awareness Month, so it’s even more appropriate that we are here today having this discussion. 

Coerced debt is financial violence — and like all forms of abuse, it leaves deep scars that can take years to heal.

As you’ve heard from the leaders here, far too many survivors of abuse are left to navigate the devastating financial aftermath of abusive relationships, hindered by financial instability and making their recovery even more difficult.  Far too many women and men are trapped in abusive relationships where their spouse or significant other has run up the bills like credit cards or auto loans – often without their knowledge. As a result, they face destroyed credit, substantial payment expectations, debt collection, and even, bankruptcy.

Even if they are able to get out, then they are often stuck with credit scores that keep them from getting a job, renting an apartment for them and their children, leasing a car, or getting their own credit card or affordable loan. This is the very definition of financial abuse. In today’s world, a good credit history is a critical economic resource. 

We need to do everything we can to help victims of financial abuse know that they can get out and get help cleaning up their credit scores.  Survivors shouldn’t have to carry financial scars of an abusive spouse or significant other. That’s what the action we are taking today is all about. 

A shattered credit score should not be the price of survival. We need to be doing everything possible to end this cycle of abuse, and do it now.

Let me share a few stunning facts that shows just how pervasive this issue is. 

According to the Center for Financial Security, 99% of survivors experience some form of financial control or abuse. That’s right, essentially every single person looking to leave an abusive relationship is forced to deal with this serious — and often still unsurmountable —barrier.  In fact, 58% of survivors reporting that abusers have monitored, accessed, withdrawn from, or otherwise controlled their bank account.

Survivors report that the number one obstacle to their safety is financial security and, when they leave an abusive relationship, they have an average of just $10 in savings and more than $10,000 in abuse-related costs. 

Every month someone is forced to stay in an abusive relationship, abusers, on average, steal $1,280. It’s disgusting, heartbreaking, and must end now. 

Some states across our nation have already started implementing their own patchwork solutions. In Texas, legislators passed a law making coerced debt a crime, allowing victims to take legal action against their abusers. In Maine, credit reporting agencies are required to reinvestigate coerced debts and financial abuse and must remove any references of these debts from a victim’s consumer’s credit report. Connecticut and California have similar laws on the books.

But here in New Jersey — while we’re lucky to have countless incredible organizations supporting victims of financial abuse, like those here today — our state has failed to pass legislation to support those facing coerced debt.  In the coming months, I’ll be working with our state legislators to help change that. We must do better here at home. In the meantime, I’ll be doing everything I can in Washington to take action at the federal level. 

With, Jersey victims — and those across the nation — we must take immediate action to address financial abuse and coerced debt. 

That’s exactly why I’m here with women’s health and consumer advocates to announce new action and legislation I’m taking in Washington to end financial abuse and support victims in Jersey and around the country. Financial abuse is often the last chain that binds a survivor to their abuser. Today, we’re taking critical steps toward breaking that chain.

First, I’m proud to announce new, bipartisan legislation with my colleague from Indiana, Congresswoman Erin Houchin. Our legislation will create an Interagency Task Force on Financial Abuse. This needs to be an all-hands-on deck solution and we must take a comprehensive approach. 

This new Interagency Task Force on Financial Abuse 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, I’ve led a bipartisan letter to the Consumer Financial Protection Bureau or CFPB, signed by more than forty Members of Congress, demanding that they take immediate action and issue new rules to support victims of financial abuse, domestic violence, and coerced debt. 

When the Director of the Consumer Financial Protection Bureau recently testified before our committee, I asked him a range of financial issues impacting women — including financial abuse. 

After the hearing, I appreciated that the Director CFPB began working with my office to combat this issue. But he 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 we are demanding that the CFPB act now to protect women and men in, and survivors of, financially abusive relationships. 

I’m proud that this letter has received public support from national organizations like National Alliance to End Sexual Violence, National Consumer Law Center, National Domestic Violence Hotline, and the National Network to End Domestic Violence.

Finally, we must remain a cop on the beat regarding all forms of financial abuse. In 2022, I 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.=

This law has changed the lives of countless trafficking survivors by providing a new pathway to financial freedom.  The CFPB should extend its efforts to include victims of other abusive relationships, such as intimate partner abuse.  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. This is an all-hands-on-deck crisis, and we need everyone, including the organizations here today, at the table.

One thing is very clear: there is nothing partisan about financial abuse and coerced debt. Democrat or Republican, no survivor should be left with the scars of financial abuse suffered at the hands of an abuser. When we protect survivors from financial abuse, we don’t just restore their credit — we restore their freedom and their future.

Today, even with the challenges we are facing, I hope you are filled with hope. Surrounded by these incredible advocates here today, I know that I am. 

Here in the greatest country in the world, if we can come together to solve problems and give victims of financial abuse the support they need, I know that our best days will always be ahead of us. Once again, thank you for joining me here today.

Thank you for everything you all do, God bless you, and may God continue to bless and watch our great country.

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