How can I help a victim of financial abuse who is left in debt?
My neighbor’s abusive deceased husband forced her to take out a loan: She works 7 days a week and struggles to feed her children – is help available?
Financial abuse: what help is there for people forced into debt?
I am writing on behalf of my neighbor with her permission.
She is a 43-year-old single mother of three children.
Her husband forced her to agree to a secure loan against her house a few years ago. He insulted and forced her. There were many police incidents.
He then took all the money, left and spent it all on his mistress, went on cruises and so on, but then died unexpectedly in 2020.
My neighbor is left with debt on her house and the loan company is making her pay £1,300 in interest alone.
She works every day from 6am to 6pm and also works as a cleaner on weekends.
She barely has money to feed her children.
Since she was forced to sign the loan, surely it shouldn’t be her responsibility to pay it back?
It’s such a sad story of such a lovely person whose house is falling apart because she can’t afford to fix it, and that’s all she’s got. Is there anything you can do to help?
Tanya Jefferies, from This is Money, replies: I am terribly sorry to hear this heartbreaking story. You are very kind for trying to help this lady.
Financial abuse is a cruel form of coercion, as it can push victims into serious debt. In the very sad case of your neighbour, the financial damage is still suffered by her and her children after the death of the perpetrator.
We have previously explored how to recognize the signs of financial abuse, for the benefit of both those affected and those who suspect someone they know is at risk of harm.
There are places you and your neighbor can contact for help, which may also be helpful to others.
Charity Survive financial abuse has a toll-free helpline in partnership with Money Advice Plus – 0808 1968845
The Refuge charity may also be able to help – 0808 2000 247
The debt charity StepChange perhaps another option – 0800 138 1111. It is best to use a non-profit debt charity and not a commercial debt consolidation firm to help you.
We asked an expert from Surviving Financial Abuse to provide more targeted advice.
Lauren Garrett, Financial Services Manager at Surviving Economic Abuse (SEA), replies: First of all I would like to say I am sorry to hear about the abuse your neighbor experienced and thank you for reaching out on her behalf.
Friends and family play a crucial role in detecting signs of economic abuse.
Your neighbor is not alone – forcing or coercing someone into debt is unfortunately a common form of economic abuse.
In SEA’s work with women who have experienced domestic violence, 50 percent said they were forced to take out a loan or buy something on credit when they didn’t want to.
Some abusers control their partner’s day-to-day actions and choices, threaten violence, or become violent when their demands are rejected. In your neighbor’s case, taking on this debt may have been the only safe option.
With economic abuse recognized in the 2021 Domestic Violence Act, there is greater understanding of forced debt, but there is still a long way to go.
It can be very difficult to get forced debt recognized by the courts and/or creditors and there is no general exception for people who have experienced domestic violence, including economic violence.
However, depending on the details of your neighbor’s situation, there are a number of potential solutions she may want to consider exploring.
This could include debt settlements, disputing debt liability, or asking the lender for a debt write-off.
There are pros and cons to all of this, so she should seek expert debt advice in the first instance.
She can find organizations that can help on the Survive economic abuse website.
Your neighbor should also call the Financial Helpline for Victims of Domestic Abuse, which is operated by Money Advice Plus in partnership with Surviving Economic Abuse.
It offers specialist advice to anyone experiencing domestic violence who is in financial difficulty and can provide strategies for dealing with debt, including forced debt.
To contact the Financial Support line for advice and guidance, call the toll-free number 0808 1968845 (Monday-Friday 9am to 1pm and 2pm to 5pm).
Calling is free. For callers whose first language is not English, an interpretation service is available upon request.