What is Financial Abuse?

Financial abuse is a wide-ranging term covering various activities. Broadly, it has been defined as the mistreatment of an individual’s money or assets (i.e. property). The law has described financial abuse to cover the following situations between perpetrators and vulnerable persons:

• Having money or property stolen
• Being defrauded
• Being put under pressure in relation to money or other property
• Having money or other property misused

A common form of financial abuse is where theft has occurred. This could either be physically, or via transfer of funds from the vulnerable person. This is usually a matter for the police. The difficulty, however, arises in family situations where there has been what appears to be a gift or series of gifts, or unexplained transactions. There is a blurring of lines here as it becomes a matter of ‘he said/she said’, so the police will rarely get involved. This relates to scenarios where there has been an improper use of money or assets when handling it for a vulnerable person under informal arrangements. It is important to note that there is usually a relationship of trust between the vulnerable and the perpetrator, which makes it hard to spot and define the abuse.

Red Flags

The impact of financial abuse can be subtle, often carried out at a low level over several years. Therefore, it is important to look for red flags in such an event. These commonly include situations where elderly or vulnerable persons with a good income suddenly don’t have much by way of savings. Another common scenario is where an inappropriate amount of pressure is placed on a vulnerable person. For instance, where the vulnerable person has been pressurised to change their will, sign over their family home to a relative, and/or make to make gifts that they otherwise wouldn’t. It is important to look out for these red flags, as abuse often goes unnoticed.

Investigating Financial Abuse

If you suspect that yourself or a loved one have been financially abused, there are a host of things one can do to investigate the potential abuse:

• It is vital to obtain financial details. Essentially, how does the victim carry out their banking and who had access to their account(s)? Examining bank statements may reveal regular cash withdrawals and/or large, unexplained transactions and transfers.
• Make enquiries with banks and pension providers. In cases of a potential transfer of property ownership, one should also investigate the ownership of the victim’s home. This can be done with the help of solicitors involved in any transactions.
• It is helpful to speak with anyone involved in anyone caring for the victim and taking a statement from these persons would be highly beneficial.

While this would be a helpful starting point, gathering evidence can be difficult. Please contact a specialist lawyer for assistance if you suspect that yourself or a loved one have been financially abused. Please also consider reaching out to Hourglass Charity for support.

Can the money/assets be recovered?

If financial abuse has occurred, it may be possible to recover monies that have been taken unlawfully and to take action to prevent further abuse. Proceedings can be brought to recover such funds both in the lifetime of the victim and after their death.

The law surrounding financial abuse is complex and our specialist lawyers are committed to working closely with you to ensure the best outcome no matter what difficulties you are facing. Please contact Ridley & Hall Solicitors on our free phone 0800 8 60 62 65, fill in our enquiry form or talk to us via live chat to learn more about how our Litigation team can help you.

Maaria Sharif – Paralegal