The Model State Coerced Debt Law (May 2004)

The Model State Coerced Debt Law (May 2024) provides civil legal remedies for victims of coerced debt—debt that occurs when an abuser utilizes coercive control or identity theft to incur debt in the name of the victim. Under the model law, if a debtor provides a “statement of coerced debt” and “adequate documentation,” the creditor must take specific actions within a certain timeframe, such as ceasing debt collection attempts, dismissing collection lawsuits, and notifying consumer reporting agencies to delete information about the coerced debt. The law also allows creditors to challenge in court the claim of coerced debt. Provisions protect the safety of debtors and their family members and provides private remedies when creditors fail to comply with the law, including actual damages, court costs, attorney fees, and, for willful noncompliance, punitive damages.