22 min
Pathways To Financial Security: A New Legal Avenue for Victims of Coerced Debt in California California Law Review
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- News
Consumer law practitioners and scholars have long argued that credit scores perpetuate historical social discrimination along lines of race, class, and gender. But what happens when abusers weaponize this financial tool—and the structural inequities baked into it—and coerce debt from their partners? And what does a new California statute created to rectify such coercion actually do?
Author: Michaela Park, 3L at UC Berkeley School of Law
Host: Kevin Kallet (Volume 112 Associate Editor)
Technology Editors: Georgiana Soo (Volume 112 Podcast Editor), Al Malecha (Volume 112 Senior Technology Editor), Kiana Harkema (Volume 112 Technology Editor)
Soundtrack: Composed and performed by Carter Jansen (Volume 110 Technology Editor)
Note Abstract: A new form of domestic violence has emerged out of the modern proliferation of consumer lending: coerced debt. Although abusers use a wide range of tactics to coerce debt—from identity theft to forcing or tricking partners to sign loan documents—coerced debt invariably damages survivors’ credit scores, creating barriers to financial stability for which existing remedies provide little relief. This note examines California Family Code Section 6342.5, a new amendment that allows survivors to request an order stating they are not responsible for debts coerced by their abuser. Survivors will then be able to use this order in conjunction with state identity theft laws to protect themselves from creditors. This note argues that, while its passage signals lawmakers are making efforts to provide victims of coerced debt with corresponding relief, Family Code Section 6342.5 may ultimately be ineffectual in the face of modern credit granting and debt collection practices and California’s own identity theft laws. California legislators must pass further legislation that recognizes the role of the credit system itself in facilitating coerced debt. Ultimately, coerced debt puts into stark relief the growing consequences of our increasingly automated and depersonalized credit system for survivors of domestic violence.
Consumer law practitioners and scholars have long argued that credit scores perpetuate historical social discrimination along lines of race, class, and gender. But what happens when abusers weaponize this financial tool—and the structural inequities baked into it—and coerce debt from their partners? And what does a new California statute created to rectify such coercion actually do?
Author: Michaela Park, 3L at UC Berkeley School of Law
Host: Kevin Kallet (Volume 112 Associate Editor)
Technology Editors: Georgiana Soo (Volume 112 Podcast Editor), Al Malecha (Volume 112 Senior Technology Editor), Kiana Harkema (Volume 112 Technology Editor)
Soundtrack: Composed and performed by Carter Jansen (Volume 110 Technology Editor)
Note Abstract: A new form of domestic violence has emerged out of the modern proliferation of consumer lending: coerced debt. Although abusers use a wide range of tactics to coerce debt—from identity theft to forcing or tricking partners to sign loan documents—coerced debt invariably damages survivors’ credit scores, creating barriers to financial stability for which existing remedies provide little relief. This note examines California Family Code Section 6342.5, a new amendment that allows survivors to request an order stating they are not responsible for debts coerced by their abuser. Survivors will then be able to use this order in conjunction with state identity theft laws to protect themselves from creditors. This note argues that, while its passage signals lawmakers are making efforts to provide victims of coerced debt with corresponding relief, Family Code Section 6342.5 may ultimately be ineffectual in the face of modern credit granting and debt collection practices and California’s own identity theft laws. California legislators must pass further legislation that recognizes the role of the credit system itself in facilitating coerced debt. Ultimately, coerced debt puts into stark relief the growing consequences of our increasingly automated and depersonalized credit system for survivors of domestic violence.
22 min