Financial abuse

We all have the right to make our own financial decisions. If someone is controlling your financial affairs or forcing you to make financial decisions you wouldn’t otherwise make, this is financial abuse.

What is financial abuse?

Financial abuse is a form of domestic abuse. It’s when someone looks to exert power over you by controlling your finances.

It can take many forms including controlling your income, spending and finances. The abuser may steal your money or restrict how much money you have to pay for things like shopping, supporting your children or paying your bills.

They may take away your credit cards or cashpoint cards so you can’t get any money or stop you having access to your finances by changing the passwords on your accounts and not telling you the new login details. They may also take out new credit in your name, either under duress or without your knowledge.

Who’s affected by financial abuse?

It’s estimated that one in five women and one in seven men has suffered some form of financial abuse typically at the hands of their partner*.

But it’s not just a partner who can be the abuser. It could be a family member, a carer or someone you think of as a friend.

How can financial abuse affect my finances?

If someone takes over your finances, they could stop you buying the things you need, push you into debt and ruin your credit record.

They may add their name to your bank account, take your money and run up an overdraft.

They may force you to borrow money or take out loans for them. They may even fraudulently take out loans in your name. If they make multiple applications for credit or use up your credit limits, this will affect your credit score.

How can financial abuse affect my credit score?

If you don’t keep up with your credit arrangements or run up debts, this will affect your credit score in a negative way. Your credit score will also be affected if you go over your credit limits, take out new credit or have joint financial arrangements with someone who does not manage their credit well.

Your credit score reflects how lenders see you. If you don’t have a good history of dealing with credit, lenders are likely to see you as more of a risk. This means you a more likely to be refused credit.

If a lender does approve your application for a loan or credit, they may charge you a higher interest rate than usual to reduce the risk of you not paying them back. You’re also unlikely to be offered their best rates and you may find lenders will only lend you a relatively small amount.

How can I rebuild and protect my credit score?

If you’ve suffered financial abuse, there are several things Experian can do to support you and help you protect your credit score.

• You can get a free copy of your credit report from us to see if someone has taken out credit in your name without your consent. If they have, we can help you deal directly with the lender to sort this out.
• We can check your credit report to see if you’re financially linked to someone. If you are, we can help you end your financial association with them.
• If you’re worried about someone applying for credit in your name, we can add a password notice of correction to your credit report. As long as you don’t tell anyone this password, only you will be able to take out credit in your name as only you will know your password.
• If you move, we can keep your new address confidential. This way it won’t appear on any shared debts you have or if you’re applying for new credit and are still financially linked to someone.

Is financial abuse the same as economic abuse?

Financial abuse is a form of economic abuse. Economic abuse involves not only trying to control another person’s finances, but their whole economic situation. So, as well as your finances, they will try and control your other resources such as housing, transport, food and employment. This means trying to control where you live. They may want to control how you get around and stop you from say using your car to get to work. The abuser may try and control what you eat and your access to food. They may also try and control your employment, such as what work you do, when you can work and where you work.

Economic abuse is formally recognised as a form of domestic abuse in the Domestic Abuse Act 2021.

Where to get help if you’ve suffered financial abuse

There are a number of organisations that can help and support you if you’ve suffered financial or other domestic abuse. There are organisations specifically for women, men, LGBT+ and older people. You can find a list of these organisations on the government-backed

website.

You can find out more about what to do and what support is available in our

guide which we’ve produced in partnership with the charity Surviving Economic Abuse.

*Source: