Hi. It's Kia. Financial abuse is a phrase that is becoming more and more widely used in modern society, partly thanks to high profile cases such as Britney Spears's controversial conservatorship where her family were in control of her earnings for many years. So it's a particularly important topic this week: how to recognize different forms of economic abuse and what you can do to help friends or family who might be experiencing this. With me today is Katie Binns, an award- winning journalist
who investigates financial abuse. Before we get into the episode, I just want to note that we'll be speaking about topics including domestic and economic abuse and coercive control, just flagging in case that's a trigger. We'll be including some places to go to for support in the show notes too. Okay, let's get into it. So Katie, financial abuse is a topic we're all becoming more aware of, partly due to celebrities such as Britney Spears, Mel B, and Kesha going public
about having been subjected to it. Could you start by explaining more about what financial abuse is, please?
Yes. Financial abuse is something that is more common than you might think. One statistic that always shocks me and that I think is worth knowing is that 6 million people in the UK will experience financial abuse at some point in their lives. Shocking, isn't it?
6 million?
Yeah, 6 million. That's what the latest research shows. And it involves someone, and this someone can be an abusive partner, an abusive friend, an abusive carer, an abusive family member, essentially denying you access to your finances and things that you own. And sadly, it doesn't exist in isolation. It doesn't happen in isolation. It happens alongside other forms
of domestic abuse. And it can be someone controlling how you spend money, denying you access to work, running up debt in your name, refusing to pay joint bills, giving you a weekly allowance. And I'm really glad that you mentioned Britney, Mel B, and Kesha, because they show us that financial abuse can happen to anyone. It doesn't matter how rich you are, how famous you are, how connected
you are. Anyone can become a victim of financial abuse. I know that in the case of Britney, even though she was earning millions from her Las Vegas residency, she was given a weekly allowance. She didn't have access to her credit card. When I interviewed Mel B years ago, she told me how, when she left her husband, she didn't have access to her bank account. She didn't have
a debit card. She didn't even have the money to put down for a deposit for a rental property.
Wow.
Yeah. Really wow, wow, wow. And in the case of Kesha, there's allegations of her being forced to work against her will with an abusive music executive. So three different women, three different situations, but they all really hammer the point that anyone can be a victim of financial abuse.
I think, like you said, when you see it not just from a normal person's perspective but from a celebrity's, it really just does show-
Yeah.
... how prevalent it is.
Yeah.
And that it can happen to absolutely anyone. And the amount of power you have doesn't exclude you from that happening-
Doesn't matter.
... to you.
Yeah.
I think wow. That's really powerful. So Katie, what are the signs of economic abuse then?
So economic abuse looks different in different situations. And actually, it can be really difficult to identify. Every person I've ever interviewed about their experience of financial abuse always says to me, " It started so gradually. And I thought they were so caring the way they offered to help me with my finances. And I thought it was really sensible that what they were suggesting." And so it starts gradually.
That's one of the key things about financial abuse. And it can be sabotaging your access to income. So we're talking about someone limiting the hours you work, maybe limiting your access to education and training so that you can work or maybe earn more money. It can be restricting your access to your finances. So someone essentially controlling how you spend or making you justify your spending, making you
go through your receipts to justify your spending. Maybe giving you a weekly allowance, making you ask for money. Maybe gaining access to your benefits, restricting your use of your car, restricting your use of a mobile phone to apply for a job or something. It can be exploiting your finances. So this is where we're talking about someone stealing your money, taking out debt in your name, which is
truly devastating. It can be someone refusing to pay their part of the joint bills. It can be someone damaging your property, which obviously causes you financial harm. It looks different in different situations. And of course, this might make people really nervous about the idea of joint finances. And I'd hate that because joint finances are a brilliant way to manage your finances in a couple. Billions of couples
benefit from joint finances, myself included. So joint finances are certainly a brilliant way to manage your finances and not to be scared of it just because of what we're discussing now.
I think it's such a wide spectrum-
Right.
... of signs that you mentioned there that even just listening to you detail some of those, I'm like, sometimes you have friends who confide in you about things about their partners. I can almost identify certain situations where that could have led to that. It hasn't-
No.
... fortunately, from anyone that I know personally. But it opens up to your mind to what it could look like-
Yes, yes.
... and begin to move into, which I think is just very key for people to be aware of.
Yeah.
So we can see how devastating economic abuse can be for people. Like you said, we've read so many stories about people that it's happened to. So is it classified as a crime now then?
So economic abuse is recognized by the law. Since 2021 it's included in the definition of domestic abuse in the Domestic Abuse Act. However, this doesn't make economic abuse a crime in its own right. What this inclusion in the Domestic Abuse Act means is that police and other agencies should be aware of the issue of financial abuse and they should be more likely to recognize a pattern of financially
abusive behaviors as coercive and controlling behavior. And this is the really important part because financially abusive behaviors are recognized and prosecuted under the coercive or controlling behavior offense. And people have been prosecuted and sentenced to prison for financially abusive behaviors under the Controlling or Coercive Behavior Act.
I think that's good to know that there is that out there. So if someone is experiencing that, you can pursue a legal route and see where that does take you. So I think it is good to know that that is there. How can we take action? So whether it's someone who is experiencing economic abuse themselves or whether we know someone close to us that-
Yeah.
... we believe experiencing that themselves?
There is help available. There are things that you can do. So if you are a victim, there is a hardship fund that you can apply to via the wonderful charity Women's Aid. I think you can apply for up to 500 pounds. Your bank may be able to help you. TSB, for example, has an emergency flee fund. HSBC has its safe spaces in all of its branches. Interestingly,
your employer may be able to help you. Just a few days ago, I saw in the news that Kellogg's has put together an employee benefits package essentially for its employees who find themselves in domestic situations and that they want to help. So your employer might be able to help you. If you have a joint current account with your partner and you want to deal with it, then
you must speak to your bank about that. That's something you can do now. It used to be that to close a joint bank account down, you'd have to have the two parties put in writing that wish. Now because of Domestic Abuse Act, that rule has been eased. So if you need to deal with a joint account, you must speak to your bank or building society. Another interesting
one is the credit reference agencies. So Experian, TransUnion, they've set up a password system so that if your abuser tries to take out credit in your name, the password will stop them. And so obviously that's a brilliant system to have in place. There's also the charity Surviving Economic Abuse, which is an excellent source of support for victims. They have a telephone support line, they have a survivor's
forum. If you are in that unfortunate position where you are watching a loved one who is in that position, what can you do? Well, again, there are things. It's about being there for them, telling them that you're concerned, telling them that you're there for them, that help is available, some of the help that I've just mentioned, for
example. And to keep checking in with them because, more often than not, it takes people time to make a decision or to act. I think be careful what you say around their abuser and be careful what you put in messages because their abuser might be reading them. That's another big one. Always have information about domestic abuse to hand so that you're ready for them whenever they're ready.
Obviously it's a no- brainer if you're in a position to help them, lend them money, offer them a spare room. And I think emotional support is a big one that you can offer. De- linking in your finances from someone can be a lengthy process, so emotional support is a big one.
That's some amazing advice that you've given there. And I think even hearing how much building societies and banks and credit reference agencies are actually putting in place to help victims, I think, is stuff that even I didn't know was there. But it's really good for people to know about whether they're in that situation now or maybe they're not, but maybe that does happen later down the line just to know that you can-
Yeah.
... do those things. And if you are someone who is observant, it happens to a loved one-
Yeah.
Then everything that you mentioned there is just really key and crucial. Thank you so much for your thoughts on this, Katie. As we all learn more about financial abuse, are there ways that the situation is getting more positive? For example, are there three things that are giving you hope?
Definitely, Kia. I think the first that the law recognizes economic abuse, the fact that people have been prosecuted and sentenced to time in prison for financially abusive behaviors. That's something that we can take heart from. I think the fact that banks and building societies are equipped to help
you, they have specially trained staff. And increasingly, other companies and sectors and industries are training their staff to recognize the signs of financial abuse. And I suppose the most positive thing I've encountered over the last five years of writing
about financial abuse is the charity Surviving Economic Abuse. They are a brilliant charity and they have campaigned and advocated and supported victim survivors for something like six or seven years now. And we can take heart from everything that they're doing. They're really changing things.
Thank you so much, Katie, for coming on to the podcast to talk about this really important topic. I think it's something that isn't spoken about enough, but it's something
that's very important. And you've shared so much insight and so much advice for people who are either in that situation or may have friends or family or loved ones who could potentially be in that to know where to go for help and just have a better understanding of what people could be going through. Thank you to Katie for coming onto the podcast and for all of her work on this
important issue. If you are affected by anything we've spoken about today, there are links in a description to relevant resources and charities who can help. If you enjoyed the episode, then you know the drill. Follow the podcast, tell all of your friends, and come back next week where I'll be talking about all things investing. See you then.