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Financial abuse

• Common signs of financial abuse

Financial abuse is when a person controls another person’s ability to acquire, use and maintain financial resources (whether cash, assets or other finances). It is a form of domestic abuse and can leave the abused person feeling isolated, lacking in confidence and trapped.

Financial abuse can take different forms and can happen to anyone of any age. Abusers can be partners, ex-partners, family members or others, such as carers or friends.

Sometimes (but not always), financial abuse will be recognised by the police as coercive or controlling behaviour, which is also a criminal offence. Victims do not have to be living with the person for the coercive or controlling behaviour offence to apply. In many cases, financial abuse can continue, or even start, after couples separate.

Financial abuse is often part of wider economic abuse (see Chapter 18).

If a person uses another person’s funds, property or any resources without their authorisation and in an improper manner, it is financial abuse.

Types of financial abuse

Financial abuse may include:

– theft – ie, money or possessions stolen, borrowed or withheld without permission;

– wrongfully controlling access to money or benefits;

– preventing someone from buying goods, services or leisure activities;

– absorbing money into a care home or household budget without the person’s consent;

– deliberately overcharging for goods or services or asking a person for money under false pretences;

– carrying out unnecessary work and/or overcharging;

– postal, telephone and internet scams where there was human interaction and a person lost money;

– unlicensed money lending (loan sharks) – ie, being offered a loan on very bad terms;

– misuse of a person’s assets by professionals;

– altering ownership of property without consent;

– exerting undue influence on a person to give away their assets;

– pressure in connection with wills, property, inheritance, possessions or benefits;

– putting undue pressure on a person to accept lower cost/lower quality services so as to preserve more financial resources to be passed to beneficiaries on death;

– misuse of powers of attorney.

Common signs of financial abuse

Debt advisers should be aware of common signs of financial abuse, especially when dealing with a vulnerable client, for example:

•personal items which are missing;
•an unexplained lack of funds;
•money being withdrawn from accounts without explanation;
•someone managing the client’s financial affairs being evasive or unco-operative;
•the client’s family or friends show an unusual interest in their assets;
•rent is unpaid or the client is facing eviction;
•a client with high financial resources living in poor living conditions;
•unusual/unrecognised entries on the client’s credit report.