Financial abuse: an insidious form of control

As a woman in her sixties, she felt she should have known better. As a lawyer she felt she should have recognised the signs.

But for Shelley, her experience of financial abuse – like for so many other victim-survivors – were controlling behaviours that started subtly and progressed over time inflicted by her perpetrator.

That’s the insidious nature of financial abuse. It can sneak up on someone. And while it is family domestic violence, and a form of coercive control – it can be a hidden form of abuse – hard to spot from the outside, and equally hard to recognise from within an abusive relationship.

Yet for Shelley, she attached so much shame and embarrassment to her experience of financial abuse. Once out of the abusive relationship Shelley remained silent, diligently paying off the $32,000 credit card debt she acquired through the abuse.

After 7 years and nearly $20,000 in payments, Shelley’s Financial Counsellor negotiated a debt waiver with the bank for the remaining debt.

It wasn’t until this point that Shelley shared with the Financial Counsellor the debt was acquired through financial abuse.

Those who are experiencing, or have survived financial abuse, often feel isolated and endure in silence, but it is important to know help and support is out there.

What is financial abuse?

Financial abuse is when someone controls your ability to access and use money or economic resources to control, exploit, or limit your financial independence. It is a form of family domestic violence.

What does financial abuse look like?

Financial abuse is an insidious way to keep someone trapped in an abusive relationship.

Here are some of the signs and behaviours of financial abuse to look out for:

• Controlling access to money: The abuser may restrict your access to bank accounts, credit cards, or cash, making it impossible for you to manage your own finances.
• Withholding money or financial support: The abuser may deliberately withhold money from you.  
• Forcing the you to take on debt: The abuser may coerce you into taking out loans, racking up credit card debt, or signing financial contracts that are solely beneficial to the abuser.
• Stealing or misusing financial resources: This includes the abuser taking your money, assets, or benefits without consent, such as draining bank accounts or misusing government assistance.
• Preventing employment or education: The abuser may make it difficult for you to work or attend education, thereby limiting your ability to earn money and gain financial independence.

What if you’re experiencing financial abuse?

Firstly, prioritise your safety, and reach out for support to 1800 RESPECT.

The Financial Wellbeing Collective have a team of Financial Counsellors experienced with supporting clients affected by financial abuse. They will advocate for you with your bank, negotiate with creditors, and refer you to supportive services including legal assistance.

If safe to do so, attempt to take stock of your financial position and documents. This will assist the Financial Counsellor in detangling your finances with you.

And if safe to do so, access your credit report which will list loans and consumer credit taken out in your name.

It’s important to remember that financial abuse can start off in subtle ways and can worsen over time, and it can happen to anyone regardless of age, gender or income level.

Western Australians experiencing financial abuse are encouraged to reach out to:
1800 RESPECT: ☎️1800 737 732

Manelka Fernando is Reporting and Policy Lead at the Financial Wellbeing Collective. She is a qualified Financial Counsellor and has been working in the financial wellbeing space for 17 years.