What is Financial Abuse?

Financial Abuse is one of the most common abuses in a relationship and is rarely acknowledged, it often leads to emotional and physical abuse later on.  Financial Abuse uses money as the weapon to control, intimidate and restrict financial opportunities of another person. This abuse is common between spouses, parents and a child or an elderly/patient and a caregiver. Anyone can be a victim of financial abuse, irrespective of their gender, age, religion, race, educational level, independent success, job status or income.

How to identify one is being subject to Financial Abuse?

Financial Abuse mostly begins slowly and escalates over time. It is not easy to identify from the outside that one person is being abused financially. Here are a few signs that one can look for –

• Denying or restricting access –
  • Not providing access to bank accounts,
  • Not allowing to purchase things without receipts
  • Ceasing credit cards or debits cards
  • Giving an allowance for ones expense
  • Not including in family financial planning
  • Taking financial decisions on the victims behalf without consulting
• Employment abuse –
  • Prevent the victim from working
  • Forcing the victim to quit their job
  • Delaying to work
  • Demanding they take a lesser job than themselves
  • Harassing at their workplace
  • Creating hostile environment at work or home so that the victim cannot perform
  • Demanding their salary is entirely handed over to them
• Forced Financial Actions –
  • Applying for a credit card or a loan in the victim’s name without their knowledge
  • Forcing the victim to take a loan for their benefit
  • Coercing the victim to sign financial documents
  • Using the victim’s credit card and refusing to pay the bill
  • Taking a loan in the victim’s name without their knowledge
  • Forcing the victim to pay their obligations
  • Asking the victim to sign financial documents without reading or giving any explanation
  • Coercing the victim to file false tax returns

Effects of Financial Abuse –

• Bad or low credit scoring
• No credit history due to lack of access to accounts
• Unable to find employment
• Legal hassle if there are unpaid bills or loan accounts or false tax filing
• Emotionally drained along with financial instability

What can a victim do?

• The victim should try to gain understanding of their finances
• Get copies of the financial documents and place them in a secure place
• Identify friends or family who can be trusted to help
• Create separate bank accounts without the knowledge of the abuser
• Start saving money, this may be easier said than done but one has to be creative and find ways to save with whatever one can have access to, like loose change, money from household expenses, etc.