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PERSONAL FINANCE

Understanding Financial Abuse

Financial abuse is a form of domestic abuse where one person controls another’s access to financial resources, limiting their ability to support themselves and forcing them to depend on the perpetrator. It can occur in various relationships, including romantic partnerships, family dynamics, or between caregivers and dependents. Financial abuse can be subtle and is often accompanied by other forms of abuse, such as emotional, psychological, or physical abuse.

Recognising the Signs of Financial Abuse

It can sometimes take time to recognise that you are experiencing financial abuse, or even to identify certain behaviors as abusive. If you feel uneasy about how someone is handling your money or finances, it’s possible that you are being financially abused. The following list can help you determine if this is the case:

Financial abuse might occur when someone:

  • Forces you to withdraw money or take out credit in your name.
  • Demands control of your financial accounts, which could include changing your login details without your consent.
  • Cashes in your pension or other cheques without your permission.
  • Adds their name to your account without your agreement.
  • Pressures you to change your will in a way that makes you uncomfortable.
  • Offers to buy shopping or pay bills with your money but uses it for other purposes instead.
  • Asks you to justify how you’ve spent your money.
  • Prevents you from accessing your bank, loan, or credit card accounts.
  • Controls what you are allowed to spend your money on.
  • Sets up Direct Debits from your account to pay bills that aren’t yours or for goods and services you didn’t purchase.
  • Pressures you to have your benefits paid into an account you don’t have access to.
  • Forces you to draw down, transfer, or stop making pension payments.
  • Makes you take out new insurance policies or cancels your existing ones

The Impact of Financial Abuse

Financial abuse can have devastating effects on victims, making it difficult for them to leave abusive relationships due to a lack of financial independence. It can lead to long-term financial instability, damaged credit, and a lack of resources necessary to build a safe and independent life. The fear of financial ruin can keep victims trapped in abusive situations.

How to Get Help

If you or someone you know is experiencing financial abuse, it’s important to seek help. Here are some steps you can take:

  • Reach Out to Support Services: Contact local domestic violence organizations or hotlines that can provide guidance and support. They can help you create a safety plan and connect you with resources.
  • Document Everything: Keep records of financial transactions, correspondence, and any instances of abuse. This documentation can be crucial if legal action is necessary.
  • Open a Separate Bank Account: If possible, open a bank account in your name only, at a bank where the abuser doesn’t have an account. This can be a step towards regaining financial independence.
  • Seek Legal Advice: Consult with a lawyer or legal aid service that specializes in domestic abuse cases. They can help you understand your rights and options.
  • Create a Financial Safety Plan: Work with a financial advisor or advocate to create a plan for regaining financial independence, which might include budgeting, rebuilding credit, and finding employment.
  • Lean on Trusted Friends and Family: Reach out to people you trust for emotional and practical support. They can help you navigate the difficult process of escaping financial abuse

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