Financial insecurity is a significant barrier to safety for survivors of domestic violence. This is due to economic abuse, where a harm-doer exerts control over the survivor’s finances. This abuse often leads to economic dependence, limiting a survivor’s long-term safety. Alarmingly, 58% of survivors report having their bank accounts monitored, accessed, or controlled by aharm-doer. And among survivors who sought help from financial institutions, 64% of survivors report receiving little to no support.
In other words, economic abuse is happening every day across every financial institution in the U.S., but financial institutions lack the awareness and tools to recognize it.
California’s AB 2422, authored by Assemblymember Timothy S. Grayson (District 15 – Concord, Antioch) and signed into law today by Governor Newsom, addresses this critical gap. The bill directs the Department of Financial Protection and Innovation (DFPI) to make online resources available to financial institutions. These resources are designed to raise awareness about economic abuse and help banks protect survivors’ assets and privacy. Key topics include the connection between domestic violence and financial security, the impact of economic abuse on employment and credit, and the importance of respecting survivors’ autonomy and agency.
AB 2422 empowers banks to play a role in ending economic abuse by providing them with the tools needed to better serve survivor customers. With these resources, financial institutions can take proactive steps to support survivors and prevent economic abuse. This law also raises public awareness of economic abuse, making the resources available to everyone.
The journey to AB 2422’s success was driven by committed advocacy. FreeFrom sponsored both the original version of this bill, AB 1841, and the current AB 2422. We worked closely with Assemblymember Grayson and his staff to refine the legislative language, emphasizing cost-saving measures to move the bill forward. Our team also met with DFPI to highlight the importance of the bill and offered our expertise to support its implementation. By submitting letters of support and providing testimony, including to the Governor’s office, FreeFrom played a pivotal role in ensuring this critical bill became law.
As one survivor shares, “When you’re a survivor, you constantly worry about how others will react to your abuse. Knowing there are people trained to spot economic abuse and respond with real support would make me feel safer, less judged, and less stressed.” This bill marks a vital step in safeguarding the finances of millions of survivors across California from economic abuse. We commend California for setting a powerful example with this legislation. To learn more about investing in survivor wealth, visit us at www.freefrom.org.
