Caption: Monzo reports significant rise in financial abuse
(Picture: Getty)
Financial abuse can look different for a lot of people.
It happens when someone – often a partner – has control of your money in some way, whether they monitor your spending or convince you to take out loans in your name for their benefit.
According to Women’s Aid, it involves a perpetrator using or misusing money which limits and controls their partner’s current and future actions and their freedom of choice.
It can include using credit cards without permission, putting contractual obligations in their partner’s name, and gambling with family assets.
While financial abuse can take place on its own, it usually accompanies other forms of abuse, such as physical and emotional.
And it’s unfortunately far more common than you think.
In fact, in the wake of the cost-of-living crisis, Monzo’s charity partner, Surviving Economic Abuse (SEA), warns that victims are now on average £20,000 in debt because of their partner’s control over finances.
This is a staggering 567% increase from 2020, when the average was £3,000, and it’s still expected to rise again in the new year.
The figures come as abuse charities are braced for a rise in cases this winter, with the cost of living crisis, the FIFA World Cup and Christmas period all likely to be used by abusers as opportunities to control intimate partners and family members.
Controlling your partner’s finances is abuse (Picture: Getty Images)
SEA revealed that in the current economic climate, two-thirds (67%) of economic abuse victims are already in a negative budget, while over a quarter (27%) have less than £100 to their name at the end of each month.
Worryingly, women who can’t access £100 at short notice are 3.5 times more likely to experience other forms of domestic abuse, beyond financial mistreatment.
What is the ‘Share With Us’ tool?
Online bank Monzo has a special in-app tool ‘Share With Us’ which allows users to report domestic and financial abuse.
They can discreetly communicate with a specialist team regarding issues such as abuse, addiction and mental health.
Launched in 2018, the ‘Share with us’ tool was created for any customers who need to disclose sensitive information in a confidential and discreet manner.
Monzo has a dedicated team of trained specialists who offer personal advice and assistance to customers who get in touch.
They can make account adjustments, to ensure the person feels in control of their finances, and signpost victims to relevant organisations who can offer further support.
Reporting via the feature is led by customers, meaning information is only logged with their consent and is untraceable, so perpetrators cannot uncover any of the correspondence.
Online bank Monzo has a special in-app tool ‘Share With Us’ which allows users to report domestic and financial abuse.
Monzo’s head of vulnerability, access & inclusion, Natalie Ledward, said: ‘Although people may think their banking app is not the obvious first port of call if they’re experiencing abuse, we can work directly with the customer to point them towards services that can get them the right kind of help.
‘Worryingly, we are now receiving disclosures of abuse every couple of days, compared to just one during the full month of January 2022.
‘With the economic crisis deepening, and Christmas fast approaching, it’s now more important than ever that we raise awareness of tools like this that could help victims when they need it most.’
The cost-of-living crisis is only exacerbating the issue (Picture: Getty Images)
Founder and CEO of Surviving Economic Abuse, Dr. Nicola Sharp-Jeffs, said: ‘Research shows that after family and friends, banks are actually the next most common place people turn to, when reporting economic abuse.
‘Lack of access to funds compounds a victim’s ability to escape and so with many hesitant to go directly to the police, it’s important people are aware of these alternative frontline services.
‘Abuse rarely happens in isolation, meaning more often than not victims of financial abuse will experience mistreatment in various shapes and kinds, so those affected by domestic abuse in any way can reach out to their bank for support.’
Warning signs of this type of abuse:
Joint finances: Appearing to be in some kind of ‘conflict’ with a partner concerning money, earnings or savings; saying their partner deals with all money matters, and having no knowledge of service providers or how much things cost; not having access to the joint bank account; wages or benefits being paid directly into their partner’s account
Shopping habits: Always using cash and not a card; counting the pennies and making lengthy decisions when shopping; buying cheap items; seeking their partner’s permission before making any purchases; saying things like, “he won’t let me spend money on that”; a notable contrast in their spending habits and lifestyle compared to their partner’s
Not working: Leaving work when they liked their job; expressing a desire to work but their partner not supporting them to do so
Not socialising: Making excuses not to join friends for coffee and meals out; working hard and looking after the children while their partner is out all the time
Appearance: Wearing ill-fitting or worn out clothing; not having a coat to wear when it is cold; not having the money to have their hair done; not being able to buy personal items
Appearing anxious: Hiding what they have bought so their partner does not see it; ‘overreacting’ to normal situations, such as going out for a meal or planning a holiday
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Since 2020 debt due to a partners control over finances has increased by 567%.
