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 honor to speak in support of Bill 41 at the Legislative Assembly of Ontario in front of the Standing Committee on Justice Policy. If passed, this will become a landmark for survivors of human trafficking who are recovering from coerced debt in Ontario, as it prohibits the inclusion of any unfavorable information that resulted from the trafficking on consumer reports. This way, creditors will be refrained from collecting any debt caused by trafficking, and it also prevents others from taking into account these debts when survivors apply for future credit, housing, or even employment opportunities.
Passing Bill 41 boasts enormous potential in addressing universal issues such as economic exploitation and control, human trafficking, systemic financial barriers, and repeat victimization for survivors of human trafficking. By eliminating the burden of having to pay off debt of their perpetrators, it gives them the support necessary in regaining potential and agency over their lives and recovery. Although we are delighted to see the efforts made toward Bill 41, CCFWE also views this as a critical step towards addressing coerced debt in other contexts we focus on, such as domestic and intimate partner violence.
In 2021, statistics show that domestic violence victims of police-reported incidents in Ontario happen at a rate of 336 per 100,000 population, whereas human trafficking police-reported incidents occur at 2.3 incidents per 100,000, highlighting the multifold criticality (Statistics Canada, 2022).
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.
Read our Bill 41 Written Submission and Executive Director’s speech for the Standing Committee on Justice Policy:
CCFWE Executive Director’s Bill 41 Speech – (July 10, 2023)
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