New York's Coerced Debt Statute: Frequently Asked Questions

Coerced debt is debt incurred through economic abuse—including fraud, duress, intimidation, manipulation, or the non-consensual use of personal information—typically by an intimate partner, family member, trafficker, or caregiver.

Victims of economic abuse in intimate relationships, family or household relationships, human trafficking situations, and caregiving relationships involving children, the elderly, or individuals eligible for protective services.

You need two things: (1) a sworn or notarized statement that the debt is coerced, and (2) one of the following: a police report, an FTC identity theft report, a court order finding coerced debt, or a written verification from a qualified third party (such as a social worker, attorney, therapist, domestic violence advocate, or member of the clergy).

The creditor must cease collection, mark the account as disputed with credit bureaus within 10 business days, and complete its review within 30 business days. If the creditor finds the debt is coerced, it must notify you and instruct credit bureaus to delete the information. If not, it must explain its decision and notify you of your right to reconsideration.

Yes. The creditor cannot contact the person who caused the debt, must use only the contact information you provide, and cannot disclose your information to anyone (including joint account holders) without your written consent.

You may request reconsideration within 30 days and submit additional documentation. You may also file a declaratory judgment action in court to establish that the debt is coerced—without needing to name or join your abuser as a party.

If a creditor violates the notice procedures, you may recover $1,000 in statutory damages plus actual damages and fees. 

If you bring a declaratory action under the statute, a court can declare you not liable, enjoin collection, order deletion of credit reporting, and award costs and attorneys’ fees.

(The statute also allows the creditor to bring a debt collection action against the abuser.)