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Financial abuse, also known as economic abuse, is a serious form of domestic abuse that affects many people across the UK. This guidance aims to help you recognise the warning signs, understand your rights, and take back control of your finances. Whether you're concerned about a vulnerable person's welfare or experiencing financial abuse yourself, understanding this form of domestic abuse is the first step towards getting help.
Common warning signs include:
- Being denied access to bank accounts
- Having wages or benefits taken
- Being forced into debt or loans
- Restriction from working
- Sudden unexplained withdrawals
- Misuse of Power of Attorney
What is Financial Abuse?
Under section 1(4) of the Domestic Abuse Act 2021, economic abuse includes behaviour that has a substantial adverse effect on a person's ability to acquire, use or maintain money or other property, or obtain goods or services.
Financial abuse may include restricting access to money, forcing someone to take out loans, withholding money for essentials, or taking control of someone's financial affairs without consent.
This type of abuse is a form of coercive behaviour designed to create dependency and maintain power and control. It can happen to anyone, regardless of age, gender, or background, and often occurs alongside other forms of abuse including physical violence, psychological abuse, and coercive behaviour.
Signs of Financial Abuse to Look For
Direct Control of Finances
An abuser may take complete control of bank accounts, forcing their partner or a vulnerable person to hand over wages, pension payments, or welfare benefits. They might refuse access to money for basic living expenses, or demand to see bank statements and receipts for all purchases. The victim may not be allowed to manage their own finances or make financial decisions independently.
Forced Financial Transactions
Financial abuse may involve forcing someone to take out credit cards, loans, or contracts in their name, often with threats or coercion. The abuser might steal money or property, forge signatures, or misuse power of attorney. In severe cases, victims may be coerced into taking out loans from illegal money lenders or loan sharks.
Restriction and Isolation
Preventing employment is a common tactic, as it limits the victim's access to money and increases dependency. The abuser may sabotage job interviews, prevent the victim from attending work, or create such difficult living conditions that maintaining employment becomes impossible. This financial control often leads to social isolation, as victims lack money for transport or communication.
Signs That Someone Lacks Mental Capacity
When financial abuse targets elderly people or those with a learning disability, signs that someone may be experiencing financial abuse include sudden changes in managing money habits, unexplained withdrawals from bank accounts, missing possessions or property, or an appointee, attorney or deputy acting against the person's best interest. A carer, neighbour, or family member may be controlling finances and property inappropriately.
How to Prevent Financial Abuse and Safeguard Vulnerable People
Legal Safeguards and Protections
The Mental Capacity Act 2005 provides important protections for adults who lack mental capacity to make decisions about their financial affairs. When someone lacks mental capacity, registered attorneys and deputies must act in their best interest, maintaining proper records of all financial decisions made on behalf of a person.
The Office of the Public Guardian oversees enduring powers of attorney and deputyship arrangements, ensuring attorneys and deputies fulfill their duties correctly. Local authority adult social care teams work with the Disclosure and Barring Service to check those in positions of trust and raise safeguarding concerns when necessary.
Protecting Yourself from an Abuser
Never share pin numbers or passwords, and regularly check bank statements for unusual activity. If you're being pressured to take on debt, remember you have the right to refuse and seek independent advice.
Keep evidence of financial abuse, including bank statements, credit card bills, loan agreements, and records of money or assets that have been taken. This documentation will be valuable if you need to take legal action or seek support from a solicitor.
Safeguarding Adults with Care and Support Needs
For vulnerable adults, care and support statutory guidance requires multi-agency working to identify and prevent financial abuse. Health and social care professionals, police, and local authority teams must work together to offer support when someone is at risk of abuse.
If you're concerned about a vulnerable person's financial welfare, contact your local authority adult social care team. They can assess care and support needs and investigate potential abuse or neglect. An independent advocate can help ensure the person's views and wishes are heard in safeguarding proceedings.
Examples of Financial Abuse in Different Contexts
Financial abuse manifests differently depending on the relationship between victim and abuser. Understanding examples of financial control helps identify when someone is being financially abused.
Domestic Violence and Intimate Partner Abuse
In domestic violence situations, economic abuse often works alongside other forms of abuse to maintain control. The abuser may prevent their partner from working, control all household finances, or force them to account for every penny spent. This financial abuse may include taking loans or credit in the victim's name, destroying their credit rating, or stealing their identity.
The National Domestic Abuse Helpline provides confidential advice and support for those experiencing financial abuse as part of domestic violence. Calling a helpline can be the first step to understanding your situation and learning about support available.
Elder Financial Abuse
Elder abuse often involves financial exploitation by family members, carers, or others in positions of trust. A vulnerable person may be pressured into changing their will, giving money or property to relatives, or granting power of attorney under duress. Carers may misuse their position to steal pension payments, misappropriate money or assets, or live rent-free in the person's home.
Abuse Through Formal Arrangements
Sometimes financial abuse occurs through misuse of legal arrangements meant to protect vulnerable people. An attorney or deputy may act against the person's best interest, using their money or property for personal benefit rather than on behalf of someone they should be protecting. This constitutes both a breach of duty and potential criminal theft.
Getting Help: Support Available for Those Experiencing Financial Abuse
Immediate Support and Advice
The National Domestic Abuse Helpline (0808 2000 247) provides 24-hour confidential advice and support. For financial matters and debt advice, contact MoneyHelper (the Money Advice Service) on 0800 138 7777. They offer free, impartial guidance on managing money and dealing with debt caused by financial abuse.
If you're concerned about illegal money lending, contact the illegal money lending team in your area. They can investigate loan shark activity and help victims escape exploitative lending situations.
Local Authority and Adult Social Care
Contact your local authority adult social care team if you're concerned about a vulnerable adult experiencing financial abuse. They can investigate safeguarding concerns and coordinate multi-agency responses. Adult social care teams work in relation to adults with care and support needs, ensuring appropriate interventions to prevent financial abuse and protect vulnerable individuals.
Legal Support and Protection
A solicitor can help you understand your legal rights and options. Duncan Lewis Solicitors provides expert guidance on financial abuse matters, including applying for protective injunctions, reclaiming stolen money or property, and challenging misuse of power of attorney arrangements.
Legal remedies may include obtaining non-molestation orders, occupation orders, or reporting theft and fraud to police. If someone lacks mental capacity, we can advise on appropriate safeguards and, where necessary, apply for deputyship to protect their financial affairs.
How Duncan Lewis Solicitors Can Safeguard Your Interests
At Duncan Lewis Solicitors, we understand that financial abuse may be part of a wider pattern of domestic abuse and controlling behavior in relationships. Our experienced team can offer support across multiple areas of law to help you regain security and safety.
Our Services Include:
Family and Domestic Abuse Law: We can help you obtain protective orders, navigate divorce and separation while protecting your financial interests, and ensure fair division of money or assets despite attempts at economic abuse.
Court of Protection: If you're concerned about misuse of power of attorney or need to apply for deputyship to protect a vulnerable person's finances and property, we provide expert Court of Protection advice on behalf of a person who lacks mental capacity to make decisions.
Civil Litigation: We can pursue civil legal action to recover money or property stolen through financial abuse, challenge fraudulent contracts or loans, and seek compensation for losses.
Criminal Law: Financial abuse often involves criminal offences including theft, fraud, and coercive behaviour. We can guide you through reporting these matters and support you through criminal proceedings.
Taking the First Step Towards Financial Independence
Remember that financial abuse is never acceptable, regardless of relationship dynamics or circumstances. You deserve to manage your own finances safely and make financial decisions without coercion or control. The law recognises economic abuse as a serious matter and support is available to help you establish independence and security and safety.
Practical Steps to Take Back Control
Start by gathering information about your financial situation, including bank accounts, debts, and assets. Open a separate bank account if possible, using a secure address for correspondence. Change pin numbers and passwords and consider setting up a separate email account your abuser cannot access.
Contact a specialist advice service or solicitor to understand your rights and options. Build a support network of trusted friends, family, or professionals who can offer support emotionally and practically. If you're in immediate danger, contact the police or the National Domestic Abuse Helpline.
Moving Forward: Your Rights and Our Commitment
Every person has the right to control their own finances and live free from abuse or neglect.
Duncan Lewis Solicitors is committed to helping victims of economic abuse and domestic violence access justice and rebuild their lives. Our team understands the complex nature of financial abuse and how it occurs alongside other forms of abuse and coercion. We provide compassionate, expert legal advice tailored to your circumstances, helping you navigate the legal system and secure your financial future.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
