To assist abuse survivors, Biden watchdog launches rulemaking

(Reuters) – The U.S. watchdog for shopper finance on Monday introduced the beginning of the rulemaking course of to guard victims of home violence and elder abuse, saying those that endure such mistreatment may be coerced into taking up debt or opening financial institution accounts.

WHY IT MATTERS

Not like different U.S. monetary regulators, the Shopper Monetary Safety Bureau is constant its rulemaking actions within the remaining weeks of President Joe Biden’s administration, as Reuters reported just lately.

This might invite reversals after President-elect Donald Trump takes workplace subsequent yr or the foundations’ populist attraction might meet with bipartisan settlement. Practically three quarters of home violence survivors say they stayed longer in abusive relationships as a result of coerced debt, in keeping with the CFPB.

KEY QUOTE

“Individuals trapped by home abuse should typically signal paperwork beneath the specter of violence, ruining their monetary lives and making it much more tough to flee,” CFPB Director Rohit Chopra stated in a press release. “Increasing identification theft protections might assist survivors rebuild their monetary lives and would be certain that our credit score reporting system shouldn’t be used as a software for home and elder abuse.”

WHAT’S NEXT

The superior discover of a proposed rulemaking is topic to public remark, a step earlier than the company can formally subject a proposal.