SPRINGFIELD – Governor JB Pritzker has signed legislation that protects survivors of domestic violence, sexual assault, exploitation and human trafficking from being forced to repay coerced debt, or debts they never willingly took on. State Senator Michael E. Hastings, who has long pushed for stronger consumer and domestic violence protections, called the law a critical step forward.
“Economic abuse is one of the most powerful and least visible tools abusers use to trap their victims,” said Hastings (D-Frankfort). “When someone is forced to take on debt in their name, or has their identity used without consent, that debt can destroy their credit, block them from housing and jobs, and keep them trapped in dangerous situations. This law gives survivors a real path to reclaim their financial independence.”
House Bill 4659, which takes effect Jan. 1, allows survivors to stop collection activity by submitting a formal Statement of Coerced Debt, supported by a police report, court order or verification from a qualified third party such as a domestic violence advocate, attorney or medical professional.
Once a complete statement is received, collection agencies must immediately pause all collection efforts, including lawsuits and arbitration, and notify credit reporting agencies that the debt is disputed. Agencies that ignore the requirements can face civil penalties of up to $2,500 per violation, plus attorney fees.
An October 2025 report by the National Consumer Law Center found that coerced debt is widespread among survivors of intimate partner violence and is strongly linked to long term financial dependence. Advocates surveyed for the study said financial insecurity caused by coerced debt is often the greatest barrier to safety and a top reason survivors remain in or return to abusive relationships. Nearly all reported that few survivors successfully remove such debt from their credit reports under existing federal identity theft rules.
Victims frequently face tens of thousands of dollars in unwanted debt. In one case cited by advocates, a human trafficking survivor was left with more than $30,000 in coerced obligations from phone accounts and credit cards alone.
Hastings said the new Illinois law provides a practical, survivor-centered process that prioritizes safety and economic recovery. He described it as part of a broader effort to close loopholes that allow economic abuse to continue punishing victims while abusers escape accountability.
