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What is financial abuse, and what do the signs look like? article
What is financial abuse, and what do the signs look like? article

Nobody should be forced to feel like they don’t have financial independence, or that someone else is controlling their financial affairs.

Unfortunately, that feeling is all too common, with thousands of people suffering from financial abuse each year in the UK.

In this guide we’ll explore what financial abuse is, give you some insight into the warning signs you can look out for, and offer a few important resources you can lean on if you, or someone you love, is facing financial abuse.

What is financial abuse?

Because it’s not as well understood as physical or emotional abuse, and it can differ from case to case, defining financial abuse can be complicated.

According to the Care Act 2014, financial abuse is a type of abuse which involves having money or other property stolen, being put under pressure over money or property, having money or property misused in any way, or being defrauded.

The Care Act’s definition of financial abuse is all-encompassing, but there are common forms of financial or economic abuse that make the concept easier to understand.

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Common forms of financial abuse

Financial abuse can often occur in an abusive relationship or amongst family members. It also tends to happen over a long period of time, which means victim’s often don’t recognise the behaviour or understand that they’re being subjected to a form of financial control.

While it varies from case to case, common forms of financial abuse might involve:

  • Stealing a loved one or family member’s money
  • Using someone else’s money to pay bills without paying it back
  • Withholding money from someone, or taking control of their bank accounts
  • Making unusual or inappropriate purchases with another person’s money
  • Forcing family members to work in a family business without paying them
  • Taking charge of all the household income in a family home without consent

Signs that suggest financial abuse

Financial abuse is a type of domestic violence in which the abuser exercises control over the victim’s money and financial resources.

Financial abuse can involve any type of financial control or exploitation, from withholding money to preventing the victim from working.

It can also involve more subtle forms of control, such as an individual being unable to check bank accounts in their name, or giving an abuser power of attorney.

Financial abuse can have a devastating impact on the victim’s ability to support themselves and their family.

If you suspect that you are being financially abused, it is important to be aware of the common signs. Common signs of financial abuse include:

  • Unexplained money loss
  • Sudden changes in financial circumstances
  • Being denied access to financial information or resources

If you are experiencing any of these signs, it is important to seek help from a trusted friend or family member, as well as from a domestic violence support organisation.

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Who commits financial abuse?

Financial abuse is a type of domestic violence that occurs when an abusive partner seeks to gain or maintain control over the finances of their victim.

Perpetrators of financial abuse often use money as a way to exert power and control over their victims, making it difficult for them to leave an abusive relationship.

Financial abuse can take many forms, from preventing a partner from working or accessing financial resources, to forcing them to take on debt in their name.

The connection between financial abuse and domestic abuse

While financial abuse can happen to anyone, regardless of their economic status, it is most commonly perpetrated by men against women.

There is a strong link between financial abuse and other forms of abuse.

Perpetrators of financial abuse are also more likely to subject their partners to domestic violence, for example.

If you are in an abusive relationship and are being subjected to financial abuse, it is important to seek help from a trusted friend or family member.

You can also contact a domestic violence hotline for support and information on how to safely leave an abusive relationship.

What should you do when financial abuse occurs?

Financial abuse is a serious problem that affects millions of people each year. If you think you may be a victim of financial abuse, it’s important to take action.

The first step is to reach out to someone you trust for support.

This could be a friend, family member, or professional such as a doctor or lawyer.

They can help you create a safety plan and get the resources you need.

It’s also important to document everything. Keep records of all financial transactions, emails, and text messages.

This will be helpful if you decide to take legal action.

If you’re in immediate danger, call 999. Financial abuse can be incredibly damaging, but there is help available.

Reach out for support and take action to protect yourself.

What do I do if I’m worried a family member is suffering economic abuse?

Unfortunately, it is all too common for family members to suffer from this type of abuse.

Financial abuse can take many forms, and the effects can be far-reaching, causing victims to lose their homes, their jobs, and even their sense of self-worth.

If you suspect that a family member is suffering from financial abuse, it is important to reach out and offer help.

There are many organisations that specialise in helping victims of financial abuse, and they can provide vital support and resources.

With the right help, victims of financial abuse can begin to rebuild their lives.

Where can I get help dealing with financial abuse?

There are several charities that offer free and confidential advice to victims of financial abuse.

Surviving Economic Abuse is one of the UK’s leading financial abuse charities. You can find helpful resources on their website.

If you’re a woman being subjected to financial abuse by a partner, you can find support on the Women’s Aid website.

And if you have suffered from serious debt problems as a result of financial abuse, you can talk to one of our friendly debt specialists today on 0800 082 8086.

Where can I get more advice on What is financial abuse, and what do the signs look like? and other debt solutions?

To discuss your options and get the support you need to deal with your debt today, contact us now on 0800 0431 431 or click the button to get started

Maxine McCreadie

Maxine is an experienced writer, specialising in personal insolvency. With a wealth of experience in the finance industry, she has written extensively on the subject of Individual Voluntary Arrangements, Protected Trust Deed’s, and various other debt solutions.

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Our debt experts, and insolvency practitioners continually monitor the personal finance and debt industry, and we update our articles when new information becomes available.

Current Version

November 22 2022

Written by
Maxine McCreadie

Edited by
Maxine McCreadie