Survivors of domestic violence face numerous obstacles to becoming safe and rebuilding their lives. Even after personal safety challenges and fleeing abuse are addressed, recent studies have found that economic abuse, in the form of coerced debt, has prolonged consequences—due to bad credit inflicted by the perpetrator. The study conducted by CCFWE in the Ottawa region, we highlighted that 84% of survivors have debt under their identity and name was a direct consequence of their abusive relationship.
Coerced debt is usually debt incurred by the perpetrator, under the name and identity of the victim through domestic violence or human trafficking. It is a form of coercive control, identity theft, and economic abuse that usually happens through use of threat, force, or fraud (Surviving Economic Abuse, 2019). Coerced debt can take on a variety of forms, with the perpetrator either:
Assaulted Women’s Helpline. – Provides anonymous and confidential crisis counseling as well as informational and emotional support to women. Toll-free: 1-866-863-0511 Toll-free TTY: 1-866-863-7868
Canadian Resource Centre for Victims of Crime (CRCVC) – Hundreds of programs exist to provide services and sanctuary to crime victims throughout Canada. They generally provide support and practical assistance. Toll free: 1-877-232-2610 TEXT: 613-208-0747
Canadian Center for Women’s Empowerment’s (CCFWE) Commitment to Ending Coerced Debt:
As the only national non-profit organization that specifically focuses on addressing economic abuse, CCFWE aims to end coerced debt through efforts made in system change, economic empowerment, research, advocacy, and policy reform. To do so, we influence policy-makers, governments, organizations, and community leaders to eliminate systemic financial barriers that impact the economic empowerment of survivors.
On July 10th of 2023, CCFWE Executive Director Meseret Haileyesus had the honour to speak in support of Bill 41 at the Legislative Assembly of Ontario in front of the Standing Committee on Justice Policy. Bill 41 was passed in December 2023, becoming a landmark for survivors of human trafficking who are recovering from coerced debt in Ontario. The bill prohibits the inclusion of any information that has resulted from trafficking in consumer reports. This way, creditors will be prevented from collecting any debt caused by trafficking. Further, it prevents the impact of coerced debts when survivors apply for credit, housing, or employment opportunities.
The passing of Bill 41 recognizes the intersections between economic abuse, human trafficking, and systemic financial barriers. By eliminating the burden of having to pay off the debt of their perpetrators, survivors of human trafficking have access to the necessary support in regaining potential and agency over their lives and recovery. Bill 41 also highlights the need to develop similar supports addressing coerced debt in other contexts, specifically domestic and intimate partner violence.
CCFWE looks forward to tackling coerced debt in similar economic abuse contexts with the government in the future. As well, we urge for a similar Act and effort to be extended at a national level, rather than just provincial.
