On December 9, the CFPB issued an advance notice of proposed rulemaking (ANPR) to request public comment on potential amendments to Regulation V, which implements the FCRA. As described by the CFPB, the ANPR would address concerns regarding coerced debt — where individuals are manipulated into incurring debt without their consent, often within the context of abusive relationships — and came in response to a petition from two organizations with interests in this proposal. The organizations’ petition highlighted research indicating that a vast majority of intimate partner violence survivors experience economic abuse, which can damage their credit scores and impact financial independence.

The proposal suggested modifying the definition of “identity theft” to encompass situations where debt is incurred without the consumer’s effective consent, thereby acknowledging the role of coercion in such transactions. This change intends “to provide relief for persons with coerced debt and specify what constitutes effective consent.” Additionally, the definition of “identity theft report” would change to align with the proposed broader definition of identity theft, so individuals with coerced debt can leverage the FCRA’s protections. These proposed changes would allow persons with coerced debt to block information resulting from identity theft on their credit reports and prevent CRAs from refusing to block such information.

The ANPR seeks feedback on issues including: (i) the prevalence and impact of coerced debt; (ii) the adequacy of existing legal protections under the FCRA and other laws; (iii) whether coerced debt reflects the survivor’s credit risk independent of the abuser; and (iv) the potential costs and benefits of the proposed regulatory changes. It also invited suggestions for alternative definitions and protections, documentation requirements for proving coerced debt, and the specific challenges faced by vulnerable groups — like those such as older Americans, children in foster care, and survivors who are people of color. Additionally, the CFPB is interested in exploring whether general protections related to coerced debt should be proposed, or if specific measures tailored to survivors of domestic or intimate partner violence would be more effective.

Comments on the ANPR must be received by March 7, 2025.