5. Identifying economic abuse
Economic abuse is often difficult to identify. There could be many reasons for unusual spending or for a client answering questions in a certain way, but there are some key signs that may help identify that a client is vulnerable to economic abuse or already a victim, including the following:
•a surplus in their budget but they are struggling financially;
•little or limited knowledge about their financial situation;
•cannot answer key questions about their income and expenditure;
•may have income paid into their partner’s account rather than their own;
•no access to their own bank account or are dependent on a joint account;
•no understanding of or is not aware of borrowing in their name;
•says their partner forced them to take out a credit card or loan or forced them to use credit against their wishes;
•no access to key documents related to their financial situation;
•appears withdrawn, fearful, distressed or scared;
•says their partner deals with all the finances, and may have unexplained sudden transfers of assets to a family member or someone outside the family;
•have unexplained withdrawals from a cash machine at a time when the account holder could not have accessed the account;
•all bills being in one party’s name and all assets in the other’s.
Advisers may also want to look out for clients who choose to accept their partner’s advice rather than theirs or allow their partners to do all the talking in an interview situation.
Clients regularly missing, cancelling appointments or continually not acting on advice, when it is in their own best interests, may be an indicator that they may not want to upset an abusive partner.
Economic abuse can cause emotional issues and feelings of isolation. It can lead to clients feeling anxious or guilty about buying/having things for themselves and they can regularly blame themselves for the abuse they have suffered or are suffering.
Advisers should make themselves aware of the tactics and methods abusers can use to gain and keep control of a client’s finances. For example:
•Having or having had control of all household finances.
•Mis-informing the client about their right to occupy their home or claim a share of the equity.
•Telling them they have no rights in relation to their matrimonial home.
•Refusing to pay bills leading to debt.
•Preventing the client from working, or forcing them to work and/or taking or controlling access to their wages.
•Restricting their access to other income, including welfare benefits.
•Extending borrowing or taking out secured loans on jointly-owned property.