Coerced debt
Coerced debt is where a person is forced into taking out financial products for someone else’s benefit.
Clients may have been made to carry out financial transactions or take out credit in their name by the abuser. For example, the abuser might:
•make the client take out a loan, mortgage or credit card against their wishes or in their name;
•use other sources of credit in the client’s name, such as car finance agreements;
•put bills in the client’s name, including utility or mobile phone contracts.
Advances in technology, particularly online banking, alongside lenders’ willingness to increase credit, can make it easier to carry out economic abuse.
Online banking is commonly used by perpetrators to closely track their partner’s accounts and monitor their spending. Perpetrators can set up text alerts on their partner’s accounts, impose spending limits and take money out of their accounts using an online banking app without the client’s permission.