To help abuse survivors, Biden watchdog launches rulemaking

(Reuters) – The U.S. watchdog for consumer finance on Monday announced the start of the rulemaking process to protect victims of domestic violence and elder abuse, saying those who suffer such mistreatment can be coerced into taking on debt or opening bank accounts.

WHY IT MATTERS

Unlike other U.S. financial regulators, the Consumer Financial Protection Bureau is continuing its rulemaking activities in the final weeks of President Joe Biden’s administration, as Reuters reported recently.

This could invite reversals after President-elect Donald Trump takes office next year or the rules’ populist appeal could meet with bipartisan agreement. Nearly three quarters of domestic violence survivors say they stayed longer in abusive relationships due to coerced debt, according to the CFPB.

KEY QUOTE

“People trapped by domestic abuse must often sign documents under the threat of violence, ruining their financial lives and making it even more difficult to escape,” CFPB Director Rohit Chopra said in a statement. “Expanding identity theft protections could help survivors rebuild their financial lives and would ensure that our credit reporting system is not used as a tool for domestic and elder abuse.”

WHAT’S NEXT

The advanced notice of a proposed rulemaking is subject to public comment, a step before the agency can formally issue a proposal.