Financial abuse

Financial abuse is a type of family and domestic violence where someone (sometimes called a perpetrator) is trying to control your ability to acquire, use or maintain economic resources in a way that does or could impact your economic security or self-sufficiency.

Put another way, financial abuse is when an abuser / perpetrator) controls your access to money, limits your ability to earn, or sabotages your financial stability. It can start slowly and sometimes be hard to see from outside the relationship. Exactly what is and is not financial abuse may be different in different families and cultures. Sometimes it is perpetrated alongside other forms of abuse. 

Your credit report matters when escaping financial abuse 

Your credit report is a record of your credit history. It includes information to identify you as well as information about your credit history, including loans you've applied for and taken out. The credit report will also reflect whether or not payments are up to date for these accounts, and also if any default information has been entered. You can access your credit report free of charge every three months from each of the three credit reporting bodies in Australia. A history of late or missed payments can damage your credit report. A poor credit report can limit you access to credit, which may make it more difficult for you to escape and recover. You can find out more about credit reports here.  

You don't have to fix your credit or credit report immediately. Prioritise your immediate needs, then when you're ready let your lender know about the abuse and they can help you fix your credit report and may be able to provide other help.

Taking steps to regain control can be daunting, but you have options

• 1. Prioritise your safety
  • If you are in immediate danger, please contact 000. 
  • Reach out to domestic violence support services. They can provide safe accommodation, counselling, and legal advice. 
  • Get free and confidential help from national services 
• 2. Understand your financial situation
  • Get a free copy of your credit report: You have a right to a free copy of your credit report every three months from credit reporting bodies Equifax, illion, and Experian. It is important to see what's been reported under your name.
    • Look for:  
      - Accounts you don't recognise. 
      - Defaults or missed payments you weren't aware of. 
      - Enquiries for credit you didn't apply for. 
  • Gather financial documents: If it's safe to do so, collect bank statements, loan agreements, pay slips, and any other financial records. 
  • Change bank accounts: If possible, open a new bank account in your name only, and have your income paid into it. 
  • Change passwords: Update passwords for all online banking, email, and other important accounts. 
• 3. If you need help, speak to a financial counsellor

  Financial Counsellors are free and independent professionals who can help you understand your financial options, negotiate with creditors, and create a budget. They can also help you understand your credit report and how to dispute errors. 

  The National Debt Helpline can provide you with initial advice and help you get in touch with a financial counsellor: 1800 007 007 / https://ndh.org.au/   

• 4. Take action on your credit report

  Credit in your name for the perpetrator’s benefit 

  • Contact your credit provider (a credit provider is the lender that provided the credit, that could be a bank or credit union, or even an energy or phone company or a buy now, pay later provider).
  • When you contact them:
  • • it may help if you tell your story and provide any information you have. If you do not have much information, telling your story is a good place to start. Your credit provider may have a specialist domestic abuse team, or vulnerable customer support that may be able to help. 
    • you can tell the credit provider that you want to be taken off the account and have it removed from your credit report

  Default listings or negative payment history because of financial abuse 

  Sometimes, financial abuse makes it impossible to pay your bills. If you've been unable to keep up with credit repayments and ended up with a default listing on your credit report because of the abuse, you can explain your situation to the credit provider and ask for the default to be removed. If you have negative payment history, you can request for this to be removed.  

  If you're experiencing financial hardship 

  Financial hardship means you're you are having trouble meeting your payment obligations for your loans and other debt. You may have already missed a repayment or think you will be unable to make future repayments.  

  • Let your credit provider or the credit reporting body know you are or have been experiencing abuse. This will assist them to offer you the support you need.  
  • Seek hardship assistance: Contact your lender and tell them you're experiencing financial hardship. They have teams and processes to help people in your situation. If you feel comfortable doing so, it can also help to tell them you are (or were) experiencing financial abuse.  
  • You don't need the perpetrator’s involvement: You can get financial hardship assistance even if the perpetrator isn't involved in the conversation or the process. Your lender can work directly with you. 
  • Protect your credit report while getting help: The best way to protect your credit report is to seek hardship assistance, while this is noted on your credit report, it does not affect your credit score and will disappear after 12 months.
  • Lenders can often arrange it so that information about your hardship assistance and missed repayments don't appear on your credit report. If you have joint credit with your perpetrator, this may mean that none of this information also appears on their credit report. You might be worried that the perpetrator might be suspicious about the lack of information being reported; you can always ask your lender to continue to report information without recording hardship, and seek to correct your credit report when it is safe to do so.  If you have already missed repayments due to your situation you can ask your lender to backdate your hardship support to further protect your credit report.