Bank, advocacy group act on ‘hidden epidemic’ of financial abuse

Survey shows more than one in four adults experienced some form of financial abuse.

woman feeling stressed and overwhelmed suffering anxiety crisis and depression

The Commonwealth Bank and advocacy group Good Shepherd are launching initiatives to help victims of financial abuse, as concern grows about rising rates of domestic violence during the coronavirus pandemic.

Chief executive of Good Shepherd Australia and New Zealand, Stella Avramopoulos, told Nine that financial abuse involved taking control of someone's spending, stopping them from getting a job or forcing them into debt. Most cases were perpetrated by men against women, she said.

Nicole McMahon, 1800RESPECT general manager, told the ABC that financial abuse happened when someone was excluded from financial decision-making or restricted from accessing money that was rightfully theirs.

“It can also be forcing you to pay for things you don't want or need, pressuring you to give money to someone, and controlling your benefits or pay,” Ms McMahon said.

“It can be stopping someone from studying or working. It can be someone forcing you to sign over assets or taking out loans in somebody else's name.”

The Commonwealth Bank (CBA) has assembled a team of 15 staff trained in helping people experiencing family and domestic violence. Good Shepherd will provide financial coaching for financial abuse victims.

“Our frontline services see this every day. Women who end up with huge debts and bad credit records caused by abusive partners,” said Ms Avramopoulos.

The CBA-supported financial independence hub will be open to all Australian residents irrespective of where they do their banking.

“Over and over again, we see how financial abuse is forcing women to choose between poverty and violence. No one should ever have to face that choice,” Ms Avramopoulos said.

CBA chief executive Matt Comyn said financial abuse was a “hidden epidemic” trapping victims in situations of domestic violence. He said customers with debts from domestic violence situations would not have their credit history reported to a credit reporting agency. The CBA would also provide interest-free loans.

“We want to increase the support to not only get through that emergency phase, but also to try to achieve long-term financial independence,” Mr Comyn said.

The bank surveyed 10,000 people and more than one in four adults said they had experienced some form of financial abuse.

Taking control of a partner's wage for household expenses, hiding assets, or refusing to contribute financially to a household were the most common behaviours of financial abuse.

Ms McMahon said it often took victims of financial abuse a long time to seek help as they were unable to see a way out.

“The most important thing is to understand it is really quite common and there is support available. There is no shame in seeking assistance,” she says.

In March, the federal government announced a $150 million package to respond to domestic violence during the pandemic.

In June, a Monash University study revealed that in the early days of the coronavirus lockdown, almost 60 per cent of  family violence victim support practitioners said the pandemic had increased the frequency of violence against women; half of respondents said the severity of violence had increased; and the number of first-time family violence reports had gone up for 42 per cent of practitioners surveyed.

Financially abusive behaviours include:

Controlling a family member’s money:

  • taking control of someone else’s finances (e.g. overseeing all the household income and paying the other person an allowance)
  • controlling how all the household income is spent
  • forcing a family member to claim social security benefits like Centrelink
  • making a family member go guarantor on a loan or take a loan out in their name
  • making a family member take out a second credit card
  • forcing a family member to work in a family business without being paid
  • filing fraudulent insurance claims
  • forging a family member’s signature on financial documents
  • taking money out of a family member’s pension
  • selling a family member’s possessions without permission
  • misusing an Enduring Power of Attorney
  • forcing a family member to change their will.

Stopping a family member from earning their own money:

  • stopping a family member from getting a job or going to work
  • stopping a family member from going to work or important meetings by keeping them up all night or physically hurting them
  • stopping a family member from studying
  • stalking or harassing a family member’s colleagues.

Limiting a family member’s access to money:

  • not giving a family member access to bank accounts
  • denying a family member access to money so they can’t afford basic expenses such as food or medicine
  • destroying, damaging, or stealing property
  • racking up debt on shared accounts or joint credit cards
  • withholding financial support such as child support payments
  • refusing to work or contribute anything to the household income
  • gambling away a family member’s money or shared money.

 

1800RESPECT reports that those who have experienced financial abuse say:

  • they were fearful of the other person
  • financial abuse was experienced with other forms of abuse
  • there were subtle changes in the other person's behaviour, and it then progressed over time
  • they were made to feel ‘stupid’ or incompetent
  • loans, mortgages, credit cards and accounts were only in one person's name, and this made them feel powerless and trapped
  • there were no discussions about finance, income, and budgets. Decisions were made without their input.

The National Debt Helpline offers free financial counselling. For assistance, call Safe Steps on 1800 015 188, national domestic violence helpline1800 RESPECT or the Men’s Referral Service 1300 766 491. In case of emergency, call 000.

Do you know someone who is experiencing financial abuse? Do you believe abuse has spiked during the pandemic?

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    COMMENTS

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    24th Jul 2020
    5:21pm
    Why is the accompanying lead in picture showing a man yelling at a woman. It repeats the lopsided bias indicated in the COVID19 "effects on men and women" article.

    Does really mean that ALL financial abusers are men?

    Our Society really has lost the plot.
    P$cript
    25th Jul 2020
    9:30am
    Graeme you are a funny man.
    Your bias to the truth is worrying, all most trying to defend your own behaviour.
    Anonymous
    25th Jul 2020
    11:14am
    Hey P$cript, Bias to the truth??????

    You really seem to lack observation ability that is customary to normal people.

    And you have made input but not answered my basic question.

    "Are ALL financial abusers men" ???????

    I might add, is balanced opinion that does not agree with the Society ideology permitted.
    AusPB
    24th Jul 2020
    5:57pm
    Graeme, good on you for asking questions about the statistics you read and the information you consume. You mention that a man yelling at a woman is 'lopsided'. Why do you say that? What exactly is lopsided?

    The comment in the article was: "Most cases were perpetrated by men against women,"

    Graeme, it's a fact, not a made up remark. It is consistently backed up by statistics that are collected and reported across many domains.

    You also ask if this means that ALL financial abusers are men? No...but, most are.

    Keep digging Graeme, to research the true issues, the real statistics as reported and accurately collected.

    Society loses the plot when it becomes OK and accepted to silence the truth.

    24th Jul 2020
    6:24pm
    AusPB I suggest you read both articles again. Also consider your accuracy of you 'yelling at a woman input.

    There is no doubt about the exclusive bias in our approach on these matters.

    No proper outcomes will be achived while mandatory bias is implanted before outcomes
    el
    24th Jul 2020
    6:54pm
    As the article shows, the abuser can be a younger family member.... a woman, daughter, or son. But very often it is an aged woman whose assets are being reduced - by another's access to them, a 'voluntary' loan, guarantor agreement etc involving partner or other relative... Banks are much more aware of this than they used to be. But continued vigilance is definitely required.

    25th Jul 2020
    11:19am
    And I'll add a quote from above.

    "Most cases were perpetrated by men against women." from Good Shepherd Australia's Stella Avramopoulos. A charming balanced input.

    25th Jul 2020
    11:19am
    And I'll add a quote from above.

    "Most cases were perpetrated by men against women." from Good Shepherd Australia's Stella Avramopoulos. A charming balanced input.
    Triss
    25th Jul 2020
    2:28pm
    Aren’t many Australians subjected to financial abuse by government? Cashless welfare cards to strictly control spending, jumping through hoops to access pension, etc.
    As many posters have said before dignity is a universal pension.


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