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. A Financial Abuse study conducted by WomanACT shows that coerced debt is now considered to be the most common form of economic exploitation (WomanACT, 2020).

What is Coerced Debt?

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:

• Accruing credit or loan under your name and identity against your will

• Using your credit cards or any other source to obtain loans against your will

• Buying something on credit against your will

• Forcing you into a desperate situation where you must obey to take out credit, usually in fear of the safety and well-being of you and others, all of which can create debt.

If you think you are a victim of economic abuse or are supporting someone who is in that situation, please visit the:

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

Project Recover – An initiative of Victim Services Toronto that will provide support to survivors of human trafficking to alleviate financial fraud and identity theft. They will only support survivors who have an advocacy agency.

Intake form: https://projectrecover.ca/authorization-form/ Email: gursharon.s@vstoronto.com

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. The CCFWE is proud to be partnering with Project Recover to support survivors of financial and economic abuse. The initiative is governed by a volunteer oversight committee made up of financial services industry executives who support and advocate for survivors on their behalf with creditors. Founded by Richard Dunwoody in 2019, Project Recover collaborates with Canadian creditors on behalf of survivors to get rid of fraudulent and coerced debt for survivors of human trafficking. The process is done through a trauma-centered approach which ensures survivors are not re-victimized. In 2022, Project Recover was acquired by the Victim Services of Toronto, a trauma-informed support and advocacy organization for those who have experienced crime or tragedy.

For more information about the initiative, please visit: projectrecover.ca.

Bill 41: Protection from Coerced Debts Incurred in relation to Human Trafficking, 2023

Thanks to Project Recover’s advocacy work, Founder Richard Dunwoody’s efforts resulted in the recent introduction of Bill 41, Protection from Coerced Debts Incurred in relation to the Human Trafficking Act, 2023.

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. CCFWE also had the opportunity to submit a high-level written statement to the committee, further highlighting the importance and support of passing Bill 41 in relation to our mission and values.

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 Written Submission Bill 41 – Protection from Coerced Debts Incurred in relation to Human Trafficking Act, 2023,to the Standing Committee on Justice Policy Legislative Assembly of Ontario. – (June 26, 2023)

CCFWE Executive Director’s Bill 41 Speech – (July 10, 2023)

Join us our National Economic Abuse Awareness Month. 

Lets work together end Economic Abuse and Coerced Debt

Contact us info@test.ccfwe.org